After Bitcoin has been moving sideways for a long time, it has suffered a massive drop. This drop would have changed the outlook in the crypto market from flat to negative, ending the historically low volatility period.
As BTC fell as low as $25,000, news of the possibility of the SEC approving Ethereum futures ETFs tossed Bitcoin above $26,000.
At this point, while BTC has remained stable around $26,000 in recent days, analysts speaking to Barron's said that there is a possibility of lower levels in Bitcoin.
Analysts have warned investors that lower levels could come as Bitcoin remains below its key technical levels, including its 200-day moving average.
Katie Stoctkon, managing partner of Fairlead Strategies, commented on the Bitcoin price:
“Bitcoin's next support is $25,200 and BTC is very close to this support.
Also, BTC is more bearish as it remains below many technical levels and remains very vulnerable to another drop.
At this point, BTC's secondary support is currently around $20,600.”
Bitfinex analysts, apart from Katie Stoctkon, wrote in a note to their clients, “The period of low volatility is over with the drop. With historical volatility rising rapidly, investors need to be prepared to see even more volatile movements in Bitcoin in the future. It can be either up or down. However, according to technical indicators tends to be on the downside.” said.
*Not investment advice.
