Bitcoin Price Headed for a Fall? Analysts Warn of ‘Nuke’
• Analysts are warning that Bitcoin price might be headed for a significant fall.
• BTC is trying to stay above the $27,000 support level but analysts fear it may fail and nuke below the support.
• Macro issues such as the decline in US BTC holdings and the total supply of stablecoins could also hurt the rally.
Bitcoin Price May Drop Significantly, Warn Traders
Analysts are issuing a nuke warning for Bitcoin (BTC) prices, expecting a major price correction as the world’s largest cryptocurrency struggles to hold above the $27,000 support. Independent market analyst PostyXBT stated that should BTC fail to reclaim this support level, there is a decent chance of Bitcoin prices dropping further.
Bulls’ Last Hope: The $27K Support Level
PostyXBT noted that if bulls cannot manage to keep BTC above this crucial support level then things will not look good for them. Crypto analyst TraderSZ set a target near $23,000 for Bitcoin should the immediate support fail. Moreover, PostyXBT noted that Bitcoin might fail to repeat its March recovery where it deviated from its bearish structure and started rallying.
Macro Issues Could Hurt Rally
Cryptoquant’s market analyst MAC_D highlighted several issues that could hinder any potential rally in BTC prices. Firstly, there has been an overall decline in US institutional investors’ BTC holdings due to ongoing regulatory issues by SEC on crypto assets and entities driving away business from the country. Secondly, MAC_D pointed out that the total supply of stablecoins has decreased which can further limit buying power in crypto markets.
Traders Divided Over Outcome
Traders remain divided over what will happen with Bitcoin price next; some are hopeful of repeating March’s recovery while others expect it to drop further below its current levels depending on whether or not bulls manage to keep it above the $27k level of support .
Conclusion
Analysts have warned about a possible significant drop in Bitcoin price with macro economic factors likely playing an important role in determining whether or not bulls manage to hold onto their last hope -the $27k level of support- before heading further southwards into bear territory once again..
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