Despite persistent efforts from major investors to keep Bitcoin floating above the $35,000 price level, market analysts believe that the exchange price of BTC/USD still has room to dip below $30,000. Moreover, a gradual decline of market liquidity could result in BTC heading into the $24,000 level, which will not be as bad as it sounds because such a situation would likely attract opportunistic institutional investors.
Is Bitcoin about to plummet below $25,000? The consensus is no, but that doesn’t mean that such a sudden sell-off is improbable. We may see a bearish period between now and August, but it will not be this bad; however, we can certainly count on volatility being a little too high for some investors.
Market Liquidity Remains Fragile
A few financial news outlets have been reporting about a recent trend among prominent market analysts. At the end of last week, most of them were still skeptical that Bitcoin could sustain its price rally and was merely “experimenting with the market.” This skepticism is centered on the lack of strong fundamentals, but there are opposing views as well.
Bitcoin Is Not About to Crash Below $30K and It’s Not About to Crash Below $24K
While some have openly advocated that the rally might be coming to a halt, others have been arguing that the market can likely continue to appreciate for the next few days.
A well-known trader, who was the owner of a popular technical analysis blog and service provider, claimed that the bulls are still able to sustain Bitcoin’s price above $35,000 until its monthly momentum completely fades.
Moreover, some of the analysts and traders at TradingView and TheTicker seem to feel that the Bitcoin price could drop below $24,000 with a lot of uncertainty. Although these analysts acknowledge the significance of selling pressure currently on the market, they’re still optimistic hat Bitcoin could eventually return to its previous parabolic rally.
If Bitcoin is to reach $25,000 before the end of this year, $30,000 will not be a significant figure to worry about. However, to hit $20,000 before the end of the year would be quite a shock to most analysts and investors who are still hoping to see the token return to the $50,000 glory days.