Bitcoin price is stuck between two key levels without any signs of directional bias. The critical support area, which prevented a steep correction, seems to weaken with each retest. However, the bulls confirmed that they will not give up the $39,000 zone immediately. While the BTC price is once again trading above $ 40 thousand, analysts think that after $ 45 thousand, ATH levels will be on the table again. Let’s look at the expectations of a few analysts who have this idea.
Bitcoin signals a crash to $30,000, weakening structural support
Bitcoin price is consolidating roughly between $45,000 and $35,000 and has been doing so for the past two months. The late January crash faced an equally strong buying pressure and resulted in a close above the $34,752 support level.
This level was crucial in preventing a steep correction to the downside. As BTC recovered from this collapse, it formed a demand zone ranging from $36,398 to $38,895. In the continuation of this phase, BTC saw impressive repulsive movements from the region. However, the appeal and strength of said support is waning as Bitcoin price tags this resistance for the third time. Therefore, a repeat of this support could open the way towards $34,752. A one-day close below this zone will be key in triggering a collapse to the $30,000 psychological barrier.
If Bitcoin breaches the $35,000 support
If such a scenario occurs, BTC will likely slide lower and rally the sell-stop liquidity below the $29,100 support level that served as a launch pad in July 2021. From a conservative perspective, the drop to $29,100 could serve as a capitulation move that marks a potential bottom. In this bear scenario, breaking the aforementioned level could push BTC to $23,000, which could be the second potential bottom.
IntoTheBlock’s Global Money In/Out (GIOM) model can be referenced to support the technical perspective for Bitcoin price. This index shows that roughly 5.06 million addresses bought around 2.45 million BTC at an average price of $23,251. Therefore, this area will be an important support level and extend from $11,443 to $36,754. A break of the $36,754 support level could be the key to a disastrous collapse to $30,000 or $23,251, according to analyst Akash Girimath. Interestingly, these levels are in perfect harmony with the technically mentioned obstacles.
