• Bitcoin (BTC) may be headed for a significant price correction, as traders issue ‘nuke’ warnings.
• BTC is trying to stay above the $27,000 support level.
• Macro issues such as the decline in US BTC holdings and the decrease in total stablecoin supply could hinder the recovery of BTC prices.
Nuke Warning for Bitcoin Price
Bitcoin (BTC) might be heading for a major price correction, warn several analysts, as the world’s largest cryptocurrency struggles to hold above the $27,000 support. Analysts issued a nuke warning for BTC prices. A nuke is a sudden depreciation in an asset’s price, often more than 10%. Independent market analyst PostyXBT noted that the $27,000 support is the “bulls’ last hope,” adding to a previous argument that BTC price might not be able to reclaim the support level. PostyXBT expects BTC price to nuke below the $27,000 support level.
Traders Expect Significant Fall
Another trader agreed with PostyXBT, claiming the dip might not be over and there was a decent chance of Bitcoin price dropping further. Crypto analyst TraderSZ stated that things were “not looking good” for BTC price unless bulls manage to hold on to $27,000. Moreover, TraderSZ set a target near $23,000 for Bitcoin should the immediate support fail. PostyXBT noted that Bitcoin price might fail to repeat its March recovery. Interestingly, Bitcoin deviated from its bearish structure to start a rally in March. As a result, some traders are hopeful of the BTC price action painting a similar recovery. However, PostyXBT noted that BTC’s current price structure did not support this hypothesis.
Macro Issues Might Hurt Rally
Cryptoquant’s market analyst MAC_D stated in a note that Bitcoin’s recovery faced several roadblocks. MAC_D highlighted the decline in US BTC holdings as one of these obstacles; an increase in US institutional investors‘ BTC holdings often coincided with a price rally for crypto assets but recently their numbers have been declining due to SEC regulations against crypto entities and assets within America.. Additionally, MAC_D noted that total stablecoin supply has also decreased which could limit traders‘ ability to purchase cryptocurrencies like Bitcoin since they often use stablecoins when doing so..
Bulls‘ Last Hope
Despite these macro issues facing bitcoin recovery efforts at present time bulls still have hope as long as bitcoin can remain above its key $27k resistance point according too independent market analyst PostyXBT who believes this is their „last hope“. Another trader agreed with his assessment stating there was still potential for btc prices falling further if bulls couldn’t maintain control over this key resistance point .
March Recovery Not Likely?
PostyXBT also remarked on how unlikely it would be for btc prices repeating their dramatic march recovery this year given how btc’s current structural configuration doesn’t appear supportive enough according too him . As such , it appears many analysts believe bitcoin may soon experience some heavy losses despite recent bullish sentiment .