Bitcoin price has risen in the past few weeks, as the prices soared beyond $30,000 to reach the yearly high of close to $31,000. While market participants have become quite bullish on the star crypto, a significant bearish trend kicked in that is constantly dragging the prices lower. Although the macroeconomic conditions are favorable for the crypto markets, the BTC price has failed to maintain a decent upswing.
One of the primary reasons for this could be that broader market conditions could be bearish as massive liquidity may have drained due to the ongoing bank crisis. As rightly highlighted by one of the popular analysts, DonAlt, S&P, and Gold have displayed strength while the US dollar has weakened along with prevailing banking FUD. Despite this, the BTC price is failing to gain bullish momentum.
Moreover, the analyst also believes that the perspective of the market participants has changed over time. Currently, they are more focused on making money than holding for the long term for larger gains. Hence the tokens like PEPE managed to surge by more than 3000% and entered the top 50.
To exacerbate the situation for the crypto space, the regulatory landscape is also moving rigorously wherein every company and exchange has been scrutinized deeply. Despite all these, Bitcoin still has some room for growth. No doubt, the BTC price has been bearish for the past few days but is holding upon 3 strong support levels, the first one being at $27,000 which has been holding strong for a couple of months.
The next levels are around $26,142 and the third one coincides with the 100-day EMA levels at around $25,000 which is one of the crucial levels. Currently, the price is in a significant support zone between $27,430 and $28,250 where 1.58 million addresses have bought 560,000 BTC. Therefore, the price is required to hold at these levels else the addresses if fall into losses may create a fresh bearish wave. On the bullish side, a flip may lift the BTC price beyond $29,000.
Source: https://coinpedia.org/price-analysis/top-reasons-why-bitcoins-btc-price-plunged-by-nearly-5-slashing-below-28000/