The crypto industry has shown significant growth since the beginning of the year, surpassing the mainstream technology sector. However, the value of Bitcoin has decreased by more than 4% in the past 24 hours reaching around $27,900.
This drop in price comes after cryptocurrency exchange Binance temporarily halted Bitcoin withdrawals twice, citing a significant backlog of pending transactions as the cause for the pause.
Popular trader and analyst Michael Van De Poppe said that there was a significant level to break at $29.2K. However, despite a slight upward movement towards this level, the break did not occur.
The situation is the Fear, Uncertainty, and Doubt (FUD) that has arisen following the recent suspension of withdrawals by Binance might have led to a drop in Bitcoin prices to around $27.9K, which is below the key level.
“Mentioned before that $29.2K was the key level to break for #Bitcoin. We did have a bounce towards it, but no break. Additionally some FUD regarding #Binance, doesn’t help. Looking at $27.4K or $26.8K for potential longs towards CME gap at $29.6K,” he wrote on Twitter.
The analyst is now looking at potential long positions towards the CME gap at $29.6K. In this scenario, there are two possible levels to watch for: $27.4K and $26.8K.
Bitcoin’s price has been struggling to surpass the $30,000 psychological level, and has been moving sideways since the end of March. In the last 24 hours, over 63,000 traders were liquidated, amounting to a total of $148.8 million in losses.
Shockingly, $26.22 million (88%) of long positions were liquidated, indicating that traders were hopeful for a bullish surge. The data provided by Coinglass shows that Bitcoin alone accounted for $35.3 million of the total liquidation.
Source: https://coinpedia.org/bitcoin/bitcoin-price-analysis-btc-loses-steam-is-the-next-target-26k/