Some analysts say that the price of Bitcoin (BTC) could drop to $27,000 in a bearish scenario if it falls through the $30,000 support area.
The potential drop to $27,000 is conditional in that BTC would have to break down below $30,500, where it strongly bounced from on Jan. 11.
Bitcoin whale clusters. Source: Whalemap
Which is the short-term Bitcoin bottom?
In the foreseeable future, there are three key technical levels at play for Bitcoin: $34,500, $30,500, and $27,000.
$34,500 has been acting as a critical support area throughout the past 72 hours. Each time BTC dropped to this level, it recovered fairly quickly to around $36,300.
If $34,500 breaks, the next major support level is $30,500. This is where Bitcoin recovered from in the big correction on Jan. 11, when $2 billion worth of futures contracts were liquidated.
A pseudonymous trader known as “Alex,” for example, said that if Bitcoin heads back down to $30,000 with no visible buyer reaction, the trade would be to wait for $27,000 or a move back up above $30,000. HeTitle: The case for Bitcoin price dropping to $27K in a possible bearish scenario
Sourced From: cointelegraph.com/news/the-case-for-bitcoin-price-dropping-to-27k-in-a-possible-bearish-scenario
Published Date: Mon, 18 Jan 2021 12:00:00 +0000