After trading above $30,000 for a few days, bitcoin price has now bottomed out. And furthermore, the lower price variation within the asset has added to the speculation that the lower levels will be hit in the coming days. One popular analyst, in a series of tweets, gave reasons why he believes the BTC price will hit $21,000 in the coming days.
The analyst believes that even if Star Crypto breaks above $30,000, it may eventually fail to hold,
- It has been tested many times and due to frequent rejections, it has become quite vulnerable
- Demand has dried up at these levels as heatmaps substantiate this claim
- These are the levels where divergence from a bear flag comes in.
- Finally, the selling pressure is too high
However, the analyst further adds that the minimum target of the bears flag is yet to be reached which is around $23,000. Also, if the asset has reached the bottom, funding rates should be negative. But in the present case, it is still positive or close to neutral.
On the other hand, altcoin perpetual contract rates are swinging with a no-man’s land after breaking out of strong support. And a strong bear market is expected to arrive soon as the next support lies below the 35% to 40% level. Adding to the substance, SPX is also extremely bearish, while DXY is showing extreme strength as it recently broke the previous high.
Nevertheless, heatmaps showing supply and demand are also bearish indicating that supply is exceeding demand. Hence, this further indicates that the traders are currently in deep fear and hence want to stay safe by leaving their holdings. If market conditions remain the same, the price of Bitcoin (BTC) could very soon drop to $20,000, as predicted by the analyst.