Bitcoin’s ongoing downward spiral has many investors concerned as the BTC price steadily declines, getting closer to the $26,000 mark. With a current market cap of $511 billion, this volatile cryptocurrency continues to break through critical support levels, indicating that a further correction is likely due.
According to renowned crypto analyst Ali Martinez, Bitcoin may see its value plummet to as low as $23,000. In a recent tweet, he mentioned that Bitcoin is losing all its major areas of support, making it more probable that a correction to the next significant demand wall between $23,200 and $24,000 could occur, especially when considering that 850,000 addresses had previously purchased 340,000 BTC at this range.
Bitcoin’s selling pressure has intensified over the last few hours, coinciding with the US markets opening on a negative note. The top three US indices are down by 0.7%, with the uncertainty surrounding the ongoing debt ceiling debate causing increased unease among investors. As lawmakers continue to negotiate and the early June deadline draws near, fears of the US defaulting on its debt may send shockwaves throughout the broader crypto market, potentially causing additional harm to both Bitcoin and other cryptocurrencies.
Crypto analyst Michael Van de Poppe has cautioned against making any new entries into Bitcoin at this point. He notes that since the $27K support level wasn’t successfully flipped, it is more likely that Bitcoin will continue to test lower values and sweep the $26K range. Investors are advised to wait for a clear bullish divergence before considering an entry point.
Van de Poppe also highlighted that the total market capitalization for cryptocurrencies is nearing the 200-week moving average and exponential moving average point, marking a critical moment of truth. A break beneath this point could result in additional harm to the market.
In conclusion, the current state of Bitcoin and the broader crypto market remains volatile and uncertain. Investors must be vigilant and stay well-informed, conducting thorough market research before making any decisions. It is crucial to remember that the opinions expressed by industry experts are subject to market conditions, and personal financial losses must be taken into consideration before embarking on any investment activities.
Source: Coingape
