Bitcoin (BTC) Price Can Hit New Lows If Drops Below This Crucial Level

The post Bitcoin (BTC) Price Can Hit New Lows If Drops Below This Crucial Level appeared first on Coinpedia Fintech News

Bitcoin has recorded increased volatility in the shorter time frame, which spells big moves in the coming weeks. Trading precariously around $27k, the bullish outlook is slowly fading away after $28k acted as a significant resistance level. The 200 WMA, however, has acted as a significant support level in the past two months despite the existence of a death cross. 

Currently, Bitcoin price is sitting above the same level as before its capitulation last year caused by the Terra Luna $40 billion collapse. With the case still not yet resolved, the Bitcoin market could cave in again towards $20k to gather more buyers. 

Bitcoin Analysis

According to a popular crypto influencer Michael van de Poppe, with more than 657k followers on Twitter, Bitcoin price must hold on to current levels if the bulls want to reign over bears in the short term. Previously, the analyst has noted that Bitcoin needed to sweep below $26k to obtain more bullish liquidity

If the current levels do not hold and Bitcoin price drops below $26.6k, the analyst expects the asset to hit new lows soon.

“If this zone sustains as support, Bitcoin will be able to reclaim $27,500. Everything looks like we’ll continue the upwards trend. Drop beneath $26,600 and we’ll see new lows,” Poppe noted.

What Next for the Crypto Market

The rise of artificial intelligence has significantly choked the short-term growth of the cryptocurrency industry. Moreover, investors are pouring in cash on AI-focused companies like Nvidia which recently reached $1 trillion in market valuation. As a result, the overall cash liquidity in the crypto market is likely to circulate between different projects as investors trade on short-term volatility.