Bitcoin (BTC) Price Can Drop To $16k If Fails to Hold This Crucial Level

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Bitcoin (BTC), the globe’s leading cryptocurrency, has failed to maintain its rebound phase and is now selling at a price of $19,000. Following the tremendous drop in Bitcoin price this year, Elon Musk’s Tesla Inc (NASDAQ: TSLA) is suffering a $440 million depreciation on its Bitcoin investments.

Tesla placed $1.5 billion of their additional funds in Bitcoin last year, in February 2021. This caused financial chaos, with Bitcoin topping at $69,000 in November 2021. Despite Tesla liquidating a few BTC last year, it still holds the majority. The organization evaluated its Bitcoin investments at $1.2 billion, three months ago. This indicates that the firm’s Bitcoin investments have declined by 33% in the last three months.

Alongside its investment, Tesla has also begun taking Bitcoin transactions for a limited time. It eventually reversed its judgment, claiming environmental issues with Bitcoin mining. 

Tesla is not the only company that has invested a portion of its excess cash in Bitcoin. This strategy has been used by other firms such as MicroStrategy, Coinbase, and Block Inc.

Bitcoin Price At $16,350?

As previously mentioned, Bitcoin is under pressure at $19,100. According to market researcher Ali Martinez, the Bitcoin transaction record reveals that $BTC needs to retake $19,500 as support as quickly as possible to prevent a drop to $16,350.

If Bitcoin (BTC) succeeds to maintain a persistent closing above $19,600, we should expect additional bullish market activity up to $22,000. It’ll be fascinating to watch what the market has in store for the next week.