Bitcoin’s price has been rather volatile over the last few weeks. The cryptocurrency’s recent plunge that wiped around $200 billion from the crypto space scared investors, but a key support level may be being held by institutional investors.

The price of bitocin how a new all-time high near $42,000 this month, after surpassing its previous all-time high in mid-December in a bull run that some believed was bolstered by institutional investors adding exposure to the cryptocurrency.

Over the weekend, however, BTC’s price plunged from its new high to around $30,500, and has since recovered to $38,700 at press time. While the price has recovered, investors still believe it may soon fall.

Read Also:   Meet the Projects Pushing Stablecoin Adoption

Ki Young Ju, CEO of on-chain analytics firm CryptoQuant, asserted that many institutional investors bought the flagship cryptocurrency above $30,000 , and speculated that if they were indeed behind the bull run, they will be protecting BTC at $30,000.

Even if bitcoin fails to hold the $30,000 level, he speculated it won’t drop below $28,000 which “could be a fresh start for institutional investors.” CryptoQuant’s data analyses institutional investment partly based on Coinbase outflows.

Read Also:   Ethereum Price Prediction – After Touching $463, ETH/USD Makes a Quick Turn




As reported, earlier this year $1.7 billion outflows from Coinbase suggested institutions bought large amounts of BTC even above the $30,000 mark. The outflows could represent institutional investment, according to the CEO, as the funds are moved to “custody-looked-like wallets,” potentially after Coinbase sets up a cold wallet for its customers from over-the-counter deals.

The $30,000 mark has been quoted by other analysts. Daniel Moss, a strategist at DailyFX, wrote this week that the crypto market has been under fire, although over the long-term, both cryptocurrencies could still go upwards, although further losses “look likely in the coming days.” Commenting on BTC’s price performance, he said:

Failing to gain a firm foothold above last week’s close ($38,200) would probably open the door for sellers to drive prices back towards psychological support at $30,000. Clearing that may pave the way for a push back towards former resistance-turned-support at the 2017 high ($19,891).

As CryptoGlobe reported Chris Svorcik, a technical analyst who writes for FXEmpire, was quoted by Business Insider as saying BTC needs to stay above $29,762 – the half-way point between its December 11 low and its January 12 high – to avoid a drop toward the $26,000 mark.

Read Also:   Former HKEX Executive: HkbitEX Will Issue The First STO Project Next Year

Bitcoin’s price, it’s worth noting, is in uncharted territory. Its previous high was seen in December 2017 near $20,000, which means that above that figure analysts aren’t sure what to expect.

Featured image via Pixabay.




Download MAXBIT Android App, Your best source of all crypto news!
Google Play

Source link


Bitcoin Unlikely to Drop Below $30,000, Crypto Analysts Explains

by John R. Potter
Choose A Format
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format