While the world’s largest cryptocurrency Bitcoin was hovering around $28,000, it fell to $27,270 with a sudden drop of about 2%.
There is no definite information about the cause of the decline yet.
However, analyst Michaël van de Poppe evaluated the price of Bitcoin after the recent drop.
Michaël van de Poppe warned that BTC is losing important support levels. He pointed out that despite this, open interest in Bitcoin continues to rise.
Van de Poppe noted that Bitcoin has lost important support levels and $29,200, $28,700 and $27,700 are all invalid.
He added that the next potential area for a bounce move is between $26,600-$26,900 and $28,700, with no real interest points expected between them.
#Bitcoin losing level after level, while Open Interest kept running upwards.
At this point; $29.200, $28.700 and $27.700 are lost as crucial levels for continuation.
Next area for potential bounce plays; $26.600-26.900 to $28.700.
In between, no interest yet. pic.twitter.com/Gc6veDy2pv
— Michaël van de Poppe (@CryptoMichNL) April 21, 2023
However, another analyst, Solid, also evaluated the situation. In the analysis he shared, Solid pointed out that although the BTC price fell, the funding rates increased, and evaluated the situation as follows:
“With every small drop the longs are liquidated, but unfortunately they continue to try to catch the falling blade and open new leverage positions, but the price continues to drop.
It means only one thing, sales are made on the spot.”
*Not investment advice.