A critical support level has been broken by BTC and now the cryptocurrency is set to drop below $30,000 again as it crashed 12% from Thursday so let’s take a closer look at today’s BTC news.
The sell-off happened despite the positive risk-on sentiment across the traditional markets which prompted analysts to blame plenty of other fundamentals like the US Treasury Secretary Janet Yellen’s remarks on using BTC in illict purposes, to the new survey by Deutsche Bank that concluded the cryptocurrency is a bubble:
“When asked specifically about the 12-month fate of Bitcoin and Tesla — a stock emblematic of a potential tech bubble — a majority of readers think that they are more likely to halve than double from these levels with Tesla more vulnerable, according to readers.”
The pessimistic fundamentals flipped the short-term bullish sentiment to bearish and now the cryptocurrency broke below two other critical support levels like the Descending Triangle and the Symmetrical Triangle. The lower trendline supports were invalidated and it paved the way for BTC to target lower levels, possibly even lower than $20,000 in the medium-term. The market was quite hopeful for a pullback from the levels around the $30,000 region as two weeks before, the price capped the bears from taking control over the bearish correction sentiment and BTC reversed the direction before it was able to rally to a new high near $42,000. Jacob Canfield who is the lead trader at Signal Profits said:
“Two scenarios I’m watching for on Bitcoin. Took a small long on this sell-off, most likely will get stopped out, but worth the RR on the trendline. Will most likely bid the zone heavily right below the wick around $30,000. Should see an aggressive buyback if we reach that level.”
A part of the upside sentiment took cues from the increase in accumulation sentiment and Grayscale Investments even purchased 16,244 BTC worth more than $600 million in one day which led the BTC reserves to a point of 63,000 BTC worth $23 billion. Plenty of analysts agreed that their buying spree will offset the crypto’s downside risks in the long-term. In the meantime, the analysts were optimistic about the recent filing of BlackRock with the US SEC as it is a company that manages $8.7 trillion worth of assets:
“BlackRock loves BTC, they manage the equivalent of 8% of world GDP. Bitcoin is 0.6% of world GDP in comparison. This is what happens to Bitcoin price when the High Net Worth get that kind of validation to buy BTC.”
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Stefan has been writing articles for DCForecasts since 2016 in-house full time. As one of our main cryptocurrency writers, he focuses on covering the latest cryptocurrency news, technical charts, price analyses of coins and press releases. When he is not exploring and covering the latest topics in crypto, you can find Stefan playing basketball, tennis or cycling.
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