Given that the price of Bitcoin (BTC) has been subjected to several significant headwinds in recent weeks, crypto trading experts have identified critical support levels that must be maintained to prevent the cryptocurrency’s value from plummeting further.
Indeed, according to Ali Martinez, a crypto market specialist, a Fibonacci retracement level at $38,530 has been identified. The expert believes, if broken, it may cause the flagship digital currency to fall even further, perhaps as low as $27,000.
“Bitcoin’s last line of defense is the 78.6% Fibonacci retracement level at $38,530. Breaching this support level could see BTC fall to $32,853 or even $26,820. Notice that on BTC 3-day chart the RSI already broke through support.”
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Similarly, Dutch analyst Michaël van de Poppe has pinpointed a similar level of support which he suggests is ‘crucial’ to stop BTC from falling to $32,000 or perhaps even sub $30,000.
“Bitcoin finally got into that lower bound area here, which is crucial for me. If this level is lost, I’m looking for new lows and potentially sub $30K.”
Bitcoin is down 20% since March 28
It’s worth mentioning that Bitcoin has also fallen by more than 20% since March 28, with over 64,000 BTC withdrawn from crypto exchange wallets worth more than $2.5 billion.
Martinez pointed out:
“Roughly 64,233 $BTC have been withdrawn from known #cryptocurrency exchange wallets since Mar. 28th, worth approximately $2.57 billion. At the same time, Bitcoin has seen its price drop by more than 20%, going from a high of $48,200 to a low of $38,566.”
Indeed, since that date, Bitcoin has experienced a significant drop despite the positive sentiment around BTC proponents following the recent Bitcoin 2022 conference in Miami.
The flagship digital asset is currently trading back just above the $39,000 level, although it is down 3.42% in the last 24 hours and 5.79% in the previous week, according to CoinMarketCap data.
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