- Bitcoin to range between $20,000 and $40,000 price levels till year-end
- Bearish Bitcoin sentiments abound on crypto Twitter
- But institutional investors are still interested in buying
JAIPUR (Coinchapter.com) – The prospect of Bitcoin (BTC) hitting $20,000 has grown gravely after it recently closed below $30,000, so says Vijay Ayyar of Singapore-based crypto exchange Luno.
The firm’s head of Asia Pacific told Bloomberg this Monday that he anticipates the BTC/USD exchange rate to fluctuate between two extreme levels: $20,000 and $40,000, flashing uncertainties that have emerged in the wake of the highly transmissible Covid-19 variant worries and its impact on the global risk-on sentiment.
In detail, Bitcoin prices extended losses after slipping below the $30,000 support Monday. In the selloff that started July 12, the flagship cryptocurrency dropped to $29,301 yesterday (almost 2 months after the May crash).
The psychological support couldn’t contain the bearish pressure and yielded today during the opening hours of the London session. BTC/USD is now changing hands at $29,500 per coin. The correction comes as fears of the highly transmissible delta variant of the coronavirus gripped financial markets.
Downside bias sustains
$40,000 has acted as crucial resistance for Bitcoin bulls. One that remained insurmountable ever since June 15. BTC/USD closing below the descending triangle pattern formed since the May crash has further fuelled bearish forces. It has also solidified the scenario where the benchmark crypto could stay restricted within the $20k-$40k range.
Crypto analyst Ronnie Moas also observed that there’s much more downside left for cryptocurrency markets.
“With more than 70 altcoins still trading at a valuation above $700,000,000 … including 35 above $2 billion … there is still some fat that needs to be cut out of this market,”he said.
Bids have piled up in favor of Bitcoin trading below $30,000 from hereon.
“Implied volatility catching a strong bid on Bitcoin trading < $30k,” noted, Skew. The professional crypto market insights providing firm supplied the below chart to support its claim.
Amsterdam-based crypto trader and analyst Michael van de Poppe sees Bitcoin hitting $24k soon. Commenting on the current state of Bitcoin markets. He said:
“Rejects $32.3K, Rejects $31K, and now at the next support zone. No real run of volume yet, through which the liquidity tap should still happen, or we’ll see a test at $24K for #Bitcoin.”
Bitcoin 4-Hour Technical Setup
The 4-hour chart of the BTCUSD pair has bearishness written all over it. Bitcoin spot rates have printed multiple red candles far away from the crucial 20-day exponential moving average (EMA) wave. Numerous green candles above 20 EMA imply a solid bullish setup for any asset. The reverse is true when prices go way below the 20 EMA.
Also, the MACD (Moving Average Convergence Divergence) indicator initiated its bearish wave and has an entire cycle to complete before any significant bullish pressure can reverse the action.
But until that happens, bears will continue to hold their line and deal further damage. And in case the correction deepens, Bitcoin prices could drop by almost 24% (length of the perpendicular side of the ascending triangle) to $22,800 levels.