We Do Not Discard The Possibility Of BTC Price Going All The Way Down To $20K: Analysts Weigh In On Current Crypto Market

What Happened: Bitcoin BTC/USD rose 6.73% over the past 24-hours, leading the rest of the crypto market to significant recovery, after falling under $30,000 on Tuesday.

However, despite falling under a critical support level, some market participants weren’t overly phased by Bitcoin’s negative price movement.

"A drop below the $30K level isn't surprising or overly concerning as BTC has traded in the $30-34K level for more than 8 weeks now, struggling to gain support above that barrier,” commented Ulrik K.Lykke, executive director at Digital Assets Hedge Fund ARK36.

“In such market conditions, some investors may grow a little restless, especially that Bitcoin and the general digital asset markets are facing increased regulatory scrutiny.”

“Importantly, while it is true that technical analysis shows that the markets are now in a full-swing bear trend with lower highs and but increasingly deeper lows, both the blockchain fundamentals and activity are painting a different picture,” said Lykke.

“This makes us suspect we may be seeing a bear trap unfold but we do not discard the possibility of the price going all the way down to $20K BTC.”

Kirill Suslov, CEO of trading app TabTrader, also weighed in on the current market scenario, presenting a more concerning picture regarding the drop under $30,000. 

"We see that volumes of trading have increased at the lower price levels, presumably because people are buying the dip. At least whales definitely are. However, such an important round number price level may be both difficult to pierce through and if pierced successfully, the negative pressure can prevail," said Suslov.

At press time, the price of the leading digital asset was at $31,300 after regaining momentum above $30,000 once again – an event that came as no surprise to Ruud Feltkamp, CEO of automated trading bot platform Cryptohopper.

"As expected, Bitcoin bounced back up after falling below $30k. The support at $30k is so strong that going below this now almost magic threshold would almost always respond in a bounce,” said Feltkamp.

“It'll be interesting to see if this support will keep its strength. If it tests the support again, we would probably not see such a bounce and face a sell-off to $23k. While trading in the summer usually isn't that interesting, there's a lot of uncertainty in the markets.”

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