The bitcoin price is falling over the past few days, which was fueled by the recent announcement of the 30% tax on the electricity used for BTC mining that was proposed by Joe Biden, the president of the United States.
Soon after this, the crypto space plummeted, incurring massive losses as the global crypto cap dropped by nearly 7%. In the meantime, Bitcoin failed to hold the crucial support level at $21,500, which directed a steep drop below $20,000. A few days ago, BTC’s price registered a massive single-day surge of nearly $1500; a similar event was witnessed but in an inverse way.
So what’s next for the Bitcoin (BTC) price? Will the price continue to plummet and mark new lows? Or is it just a short-term impact that may be reversed soon?
As Bitcoin’s price heads towards its crucial support level at $19,800, a clear rebound is the need of the hour. If the price fails to hold these levels, the price is believed to drop toward the next strong support level at $18,500, as predicted by a popular analyst at Titan of Crypto.
However, analysts also say that the weekly close may be important, as may a close above the ‘Kijun line’ which is a component of the Ichimoku cloud indicator, located at $20,358. Presently, Bitcoin appears to have reached the ley support levels between $18,900 and $19,600, wherein 1.2 million addresses bought 576,390 BTC.
Therefore, if the price fails to hold at these levels, a mass liquidation may trigger, driving the price extremely low. Besides, if the price experiences a healthy rebound, then a stiff resistance is located at $23,000, where 1.5 million addresses hold 768,870 BTC.
Collectively, bearish clouds haunt the Bitcoin price rally ahead as market sentiment does not appear to be in favor of bulls. Therefore, the upcoming weekend may be extremely crucial for the BTC price and the entire crypto space, as the bears have gained enormous strength, enough to keep the levels restricted.