Discovering the Potential Bottom of Bitcoin’s Price
The price of Bitcoin (BTC) has recently reached its lowest point in over two months following the news of SpaceX’s decrease in BTC holdings. This has led to increased volatility in the market, breaking the previous period of stagnant trading. Traders and investors are now wondering how much lower the price of Bitcoin can potentially go.
Analyst Predicts Epic Level Support at $25,000
Prior to the news of SpaceX’s write-down, traders were hoping that $28,000 would provide strong support for Bitcoin. However, despite multiple support trend lines and the psychological safety net of the $28,000 mark, the price dropped below $26,500. Analyst Gareth Soloway suggests that $25,000 is now the key area of interest for a BTC buy-in. Soloway argues that if Bitcoin falls to $25,000, it would have significant psychological impact as it is considered an epic level of support.
Potential “Max Pain” Level at $9,000
While $20,000 still remains a crucial level to watch, as it represents the point where Silicon Valley Bank (SVB) failed, Gareth Soloway also warns that there is a possibility of Bitcoin dropping to four-digit prices. He states that if $20,000 is surpassed, the next potential support levels are $15,700 and $12,000-13,000. The lowest point could be $9,000, which Soloway refers to as the “max pain” level.
Bitcoin as a “Fire Alarm” for Global Liquidity
Sam MacDonald, head analyst at CCI Australia, suggests that Bitcoin is acting as a “fire alarm” for global liquidity. This implies that a major stock market crash could be on the horizon. However, it’s worth noting that Bitcoin liquidations have been decreasing, indicating that the worst of the sell-offs may have already passed.
The Importance of Moving Averages
Bitcoin’s 200-week simple moving average (SMA) has historically served as a significant level of support during bear markets. However, in recent times, the 200-week SMA has been increasingly challenged. Caleb Franzen, senior analyst at Cubic Analytics, sees the area around the 200-week MA as a potential buying zone. He believes that as long as Bitcoin stays above $25,000, lower levels are less likely to occur.
Editor’s Notes: The Importance of Staying Informed
It is crucial to stay informed about the latest developments in the cryptocurrency market, especially when it comes to Bitcoin’s price fluctuations. Understanding the potential bottom of Bitcoin’s price can help investors make informed decisions. For more news and analysis on the crypto market, visit Uber Crypto News.