According to an analyst, a further drop in Bitcoin’s price could help bring the $30,000 support level into focus.
Bitcoin’s price plunged to $34,800 on Friday. This is an extension of its downward slide that could lead to further losses up to $30,000.
The BTC/USD pair hovers around $34,825, almost 12% lower in 24 hours, and just under 20% this week.
The wider crypto market continues to show its worst week since mid-December. After a 14% plunge in 24 hours, the cryptocurrency market total is now at $1.7 trillion.
All 10 biggest cryptocurrencies by market capital have experienced double-digit losses for the day.
Fairlead Strategies’ Katie Stockton, a technical analyst, told Insider Friday that bulls could be seeking support around $37.361. She said that a breakdown to this “secondary support level” would see the flagship cryptocurrency’s overall decline total 22% from the recent highs to $30,000.
Stockton noted that the $37k area was a buffer zone. It also characterises the benchmark digital asset’s long-term uptrend line, below which lies the potential for more pain.
She also pointed out that a rebound in BTC/USD which leads to a weekly close of above $37,361 would likely negate the negative outlook. Analyst points out the technical picture which shows oversold conditions as one that is likely to support a short term uptick in price movements.
If the downturn causes more rot, and turns the highlighted area into a supply wall, bulls will have a tough time. According to the analyst, whose forecast came before BTC’s plunge to $35,262, another leg down would signal the start of a fresh bearish reversal.
As investors become more cautious, the bearish trend for crypto coincides with a sinking stock market. As the Federal Reserve raises interest rates, the market is seeing a steeper drop in risky assets.
Mike Novogratz (crypto billionaire and CEO of Galaxy Digital) stated on Friday that crypto is facing a tough time and would likely only rebound once stocks “find their base”. Investors should be monitoring the stock market closely as the Fed’s January meeting occurs next week.
The Nasdaq closed at 2.2% lower on Friday. Meanwhile, the S&P 500 (Dow) and Dow were also down by more than 1 percent to mark another week of negative stock movements.
