No sooner was Bitcoin experiencing a minor recovery phase than the bears quickly dragged the price back below $30,000. However, if market participants believe it is a short-term correction, the token appears to be bracing for a massive bearish move. The descending move appears to have been triggered as more than $180 in crypto longs have been whipped out, which has caused the flagship crypto, Bitcoin, to drop by more than 2%.
The daily candle, which had formed a bullish engulfing some time ago, has now transformed into a bearish engulfing, which appears to have been validated now. Now that the markets have turned volatile, the Bitcoin price has dropped back to its previous levels. Alongside, the price is testing some crucial levels, and a breakout below these levels may trigger a massive inverse action soon.
A popular analyst, Kaleo, believes the drop may certainly not be massive as a healthy rebound may be triggered, lifting the price back above $30,000.
However, the Bitcoin price is expected to remain consolidated between $29,000 and $30,000 for the next few days, after which a bullish breakout may raise the levels above $30,300. Currently, the entire crypto market appears to have fallen into a significant bear trap as the global market capitalization has dropped by more than 3%, recording levels around $1.23 trillion. While the volume has soared by more than 25%, a strong bearish move may be speculated before the daily close.
Source: https://coinpedia.org/price-analysis/bitcoin-breaking-down-from-crucial-levels-how-will-the-crypto-markets-be-impacted/