- A bearish flag means that the price of BTC will fall lower
- Low volume cannot support $30k
- A severally tested support will degrade
BTC is currently trading at $32,173, having shed 16.20% in the past 7 days. For an asset that traded above $60k last year, it has been a dramatic decline. Many investors are eager to know when the price of BTC will bottom.
Even though no one knows exactly when the price of the digital currency will get a base prior to a reversal, market watchers and technical analysts have taken stances on what they believe would happen down the line.
According to a Twitter analyst, Crypto Capo, the possibility that the $30k support will hold is slim. The reasons that he projected is that the support has been tested severally and that with the reduced volume, the support for the coin will be quite low at that value.
“It has been tested many times, so it’s weaker now. This is the 5th test”. Other factors that he highlighted is the fact that the price is coming from a high deviation, low trading volume and a high selling pressure. He maintained that all these would lead to a breakdown of the $30k support which will bring BTC within the range of $21k.
Bearish Flag Formation
Another analyst, Chill Trader agrees that the $30k support will not hold. Their reason is strictly based on the pattern that BTC has formed on the chart (a bearish flag). He made this inference based on the repetitive pattern from historical data. According to Chill Trader, Bitcoin will trade around $20k by November 2022.
In his input, Danny Hei said:
“Unfortunately I agree . The bounce volume is pathetic. We can’t even hold on for more than 1 hour . Unless we get a serious short squeeze, my guess is we will dump again and 28.7 k will give to 20 k at least”
It Could Fall Even Lower
Jan Grenade seems to agree. He went further by stating that a straight line from the top of the BTC ATH to the bearish flag, gives the value of $19,400 and assets that the point of reversal could lie around there.
He states that:
“Draw a line from ATH to bottom of bear flag, then put that line at breakdown point of bear flag and you get 19400, also a death cross on 3 day, playing out soon, the weird thing is, it’s predictable if you no”
its reminds me in 2018, 6k support for many time and finally at the end of the year it broke too, I think this will also happen at 30k support
— Aries Rismayana (@TorototHeong) May 10, 2022
The Bullish See The Half-Full Cup
There are still traders and analysts that believe against all odds that the BTC price will not fall as low as $20k. One of such traders is Nicholas Cussin. According to him, since the price of BTC has never gone lower than the previous cycle, he said that if the price of Bitcoin gets anywhere close to $23k, institutional investors would scramble for the asset. He maintained that as far as this class of investors are concerned, BTC will always have market support at $23k.
The BTC/USD chart as seen from Tradigview shows that the coin is in a downtrend. With the relative strength indicator showing a value of 23, it is in the oversold region and a temporary upswing will send the value above the $31k mark. However, sustaining the upward momentum is what will make a difference between recovery and a downward spiral.