Last week, a crypto market analyst, TraderKoz said that if BTC could hold the $37,000 support line over the weekend, its chances of regaining the $42,000 resistance level would grow. However, if BTC failed to hold this support line it could drop to levels between $30K and $35K.
Now, the weekend has come and gone, and Bitcoin is sitting at $34.5K firmly below $37,00, and it could fall even further.
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TraderKoz is not the only one who thinks that BTC could be in for further price drops. CoinTelegraph cited anonymous crypto market analysts @noshitcoins, who said that derivatives and on-chain data could signal more shrinkage in the price of Bitcoin.
Market sentiment seems to be flashing toward further drops. The Bitcoin Fear & Greed Index, which shows an approximation of how likely BTC traders are to buy (greed) or sell (fear) their coins flashed at ‘extreme fear’ on May 29th, the last time that the account posted on Twitter.
Bitcoin Fear and Greed Index is 18 – Extreme Fear pic.twitter.com/1Rv4w8O1B5
— Bitcoin Fear and Greed Index (@BitcoinFear) May 29, 2021
Literally everybody was interested in #Bitcoin at $60,000.
Literally nobody is interested in #Bitcoin at $35,000.
— Michaël van de Poppe (@CryptoMichNL) May 30, 2021
How Low Could BTC Go?
The consensus among analysts seems to be that $30K may be the stopping point. Market analyst @j0hnnyw00 wrote on Twitter that BTC will “retest the bottom of the wedge (~30k) and bounce from there (sic).”
#Bitcoin $BTC #BTC is forming a Descending Broadening wedge here. It’s bullish but there are two possible scenarios.
Green: breaking the resistance and maintain the uptrend.
Red: retest the bottom of the wedge (~30k) and bounce from there. pic.twitter.com/8L26kQvf7X
— Johnny Woo | Never DM you for Money (@j0hnnyw00) May 25, 2021
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While it has come close, BTC has not yet dropped below this point since early January 2021; some analysts are predicting that if BTC hits below $30K, further drops to even lower figures could follow.
You aren’t ready for what happens if Bitcoin breaks under 30k.
— Autism Capital 🧩 (@AutismCapital) May 30, 2021
At the same time, there seems to be a group of investors that are seeking to stack more BTC should the price drop below $30K. Bitcoin and crypto investor Lark Davis wrote on Twitter that he “Would love to pile up on some more #bitcoin under 30k, more #ethereum under 2k, and would get into some #defi blue chips if their prices drop much further (sic).”
— Lark Davis (@TheCryptoLark) May 30, 2021
However, some analysts believe that a drop below $30K is highly unlikely for Bitcoin. Last week, Glassnode Co-Founders, Yann Alleman and Jan Happel wrote on Twitter that there was strong support for the $30K level.
Highest realized daily losses recorded in history.
This shows how many investors support the 30k #Bitcoin level.
A coin realizes a loss if the price at its last movement was higher than the price of its current movement.https://t.co/6YR4sHCJTk pic.twitter.com/iKbkwrDUyQ
— Yann & Jan (@Negentropic_) May 26, 2021
Will BTC drop below $30K? Let us know in the comments below.