BTC bulls’ tough battle to defend $20,000 has begun, analyst says
Bitcoin (BTC) price shows no signs of recovery in the short term, as analyst Akash Girimath pointed out.
According to him, BTC continues in a downtrend that will be difficult for the bulls to overcome.
According to the analyst, although the bulls show some intention to fight, data shows that they should not be successful. Despite this, there is one key support that the bulls need to maintain, the $20K mark.
“Bitcoin price remains bearish but now has fundamental support at $20K,” he said.
The analyst stated that below this level it will be impossible to predict how far the fall could take BTC.
However, if the bulls manage to hold the mark and $20k, they can push BTC above $23k.
“In that case, as sellers slow their discharge, investors can expect relief,” he pointed out. “If that occurs, traders can count on the bulls revisiting Monday’s high at $26,882,” he points out.
This relief could also slightly lift the value of Ethereum, XRP and altcoins in general, he said.
But he points out that a failure of Bitcoin to break above the $23,480 resistance will prematurely stop the relief rally.
“If BTC produces a candlestick below the 200-week SMA at $22,383, the downtrend will continue,” he points out.
Like Girimath, the analyst known as El Capo also argues that $20,000 is a key level. Therefore, any drop below this level will deal a heavy blow to Bitcoin.
“If BTC loses the $20,000 level, the panic could be huge,” he highlighted.
According to him, many people have stop loss at this level, and if BTC loses this mark, the size of the drop could be large.
“It could easily reach 16,000 to 18,000 if I lose the 20,000,” he concluded.
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