A top crypto analyst claims that if a support level is lost, the price of Bitcoin (BTC) could fall sharply.
The analyst, known in the cryptocurrency market by the nickname DonAlt, expects a drop of up to 30% if Bitcoin loses the $30,000 level.
The analyst states that Bitcoin has recovered on the positive news about Bitcoin spot exchange-traded fund (ETF) applications and the historic XRP decision, but this effect will lose its strength at some point.
“The price is higher than yesterday. And now I expect much more drop in Bitcoin than I expected yesterday. (…)
Overall, the first thing that’s great about Bitcoin right now is basically, this move starts with good news, and secondly, it’s a very strong level of 30,000 which is obvious, $30,000 round figure, $30,000 sounds like a good number.
And I think if we lose both, basically if we lose the news coverage and we lose the $30,000 psychological level, I think BTC will collapse – it will go down 10%, 20%, 30% almost instantly, like the proper nuclear level.”
A 30% drop from Bitcoin’s current price of $30,307 could bring BTC as low as $21,000.
According to DonAlt, Bitcoin could gradually lose value over the next few days before the entire crypto market turns bearish.
“Because this news increased Bitcoin by 2%. You can expect much, much more. But basically, the bull invalid is 2% away. (…)
I still feel bad. There are several reasons why I am very, very protective in the market. However, even if we bleed for the next three, four or five days, I think altcoins can gain some momentum, we may still experience some altcoin movement.
But that would be the worst combination to be honest. While Bitcoin bleeds to forget this news event, if altcoin moves, it would be the worst possible drop… Any full reversal of this news event would trigger a very, very big drop. That means you can go up until it happens.”
You can follow the current price action here.