Bitcoin (BTC) has seen a turbulent past few days after Elon Musk showed support for the cryptocurrency amid the GameStop fiasco on the equity markets. However, since that tweet, Bitcoin’s price has been correcting after the entire push through Elon Musk was retraced.
Since then, Bitcoin’s price is facing a crucial hurdle at the $35,000–$35,200 area before an all-time high test. Once that area breaks and flips for support, continuation toward a new all-time high is likely.
Bitcoin doesn’t hold $35K and has to flip it for support
XBT/USD 3-hour chart. Source: TradingView
The three-hour chart shows a clear downtrend structure, with the “Elon Musk pump” outlier. This downward structure was established after the peak high at $42,000 earlier in the year.
This downtrend has seen lower highs and lower lows, which can be seen in the chart. Therefore, there is a good possibility that this downtrend will continue.
If BTC breaks the $35,000 barrier, the $38,000 resistance zone level should pose not much of a problem for the bulls. The next likely major areaTitle: How low can Bitcoin price drop if BTC fails to retake $35K soon?
Sourced From: cointelegraph.com/news/how-low-can-bitcoin-price-drop-if-btc-fails-to-retake-35k-soon
Published Date: Tue, 02 Feb 2021 15:09:00 +0000