• Analysts have issued a ‘nuke’ warning for Bitcoin prices, suggesting that BTC may be heading for a major price correction.
• Several factors could contribute to the decline in BTC prices, including a decrease in U.S. bitcoin holdings and a decline in total stablecoin supply.
• If the $27,000 support fails, traders expect Bitcoin’s price to drop to around $23,000.
Bitcoin Price May Be Heading for Major Drop
Analysts have warned that Bitcoin (BTC) might be headed for a major price correction as the world’s largest cryptocurrency struggles to stay above the $27,000 support level. Independent market analyst PostyXBT noted that this support is the “bulls’ last hope,” adding to previous arguments that BTC may not be able to reclaim it if it falls below this point. PostyXBT expects BTC prices to “nuke” below this level if it fails.
U.S Regulatory War on Crypto Hurting Institutional Investors
Cryptoquant’s market analyst MAC_D stated in a note that Bitcoin’s recovery faces several roadblocks due to external factors such as the decline of US holdings and decreasing stablecoin supply levels. The U.S Securities and Exchange Commission (SEC)’s ongoing regulatory war on crypto assets and entities has driven institutional business away from America which has caused a noticeable decrease in bitcoin holdings within the country recently. Additionally, since traders often use stablecoins to purchase crypto assets like bitcoin, the total supply of these coins can indicate buying power among investors; however, their total supply has been steadily declining as well in recent months which could affect Bitcoin prices negatively should it fall below its current support level of $27k USD.
Traders Expect Price Drop If Support Breaks
Several traders agree with PostyXBT’s assessment that BTC might not repeat its March recovery trend if bulls fail to hold onto its current support level at $27k USD. TraderSZ suggested there is a decent chance of prices dropping further unless buyers manage to keep them afloat and set an expected target near $23k USD should this happen while PostyXBT argued against any possible March-like rally based upon BTC’s current price structure.
Bulls’ Last Hope?
It remains unclear whether or not bulls will be able to maintain their grip on Bitcoin’s current position but analysts are increasingly pessimistic about its chances should they fail; though some still remain hopeful given how quickly things can change within the volatile crypto market space where sudden rallies can occur just as easily as sharp drops can take place depending on investor sentiment at any given time period so only time will tell what becomes of BTC should it dip below its crucial support level and turn bearish once again soon after being bullish throughout 2020 overall so far up until now at least anyway .
In conclusion, analysts have issued warnings about potential major corrections coming up ahead for Bitcoin (BTC) due primarily external factors such as U.S regulatory issues driving down institutional investment within America combined with declining stablecoin supplies also acting against potential rallies taking place soon too so traders are expecting possible dips down towards $23k USD if BTC fails to secure its crucial support level currently sitting at around $27k USD right now although some remain hopeful regarding possible sudden rallies occurring yet again like we saw back during March earlier this year too yet regardless only time will tell what ultimately happens moving forward here shortly into 2021 hopefully sooner rather than later too then finally .