Following LFG's sale of 80K BTC, analysts advise investors to keep an eye on Bitcoin price levels.
$20,000 or $32,000? Both are part of the Bitcoin price forecast for the future.
To prevent a breakdown in the $20,000 region, Bitcoin (BTC) must maintain existing levels while working to recapture higher levels, according to the latest estimates.
Is $20,000 expected?
BTC/USD failed to solidify $30,000 as support on May 16, according to data from sources. After securing a record seventh straight red weekly candle, the pair saw additional losses after the weekly closure at $31,300, surprising market players.
Despite the fact that the Luna Foundation Guard stated that it has sold nearly all of its BTC holdings during last week's Terra and TerraUSD implosion, the projected absence of future selling did not improve market sentiment.
"The next several days, in my opinion, will be crucial. Maintain current levels and work your way up from here "Phoenix, a well-known trader, summarized the day in a tweet.
"If it fails, I'm looking at $21.8K–$23.8K. I didn't expect to remember those again, lol. I was mistaken in thinking the Q1 structure marked the beginnings of a bullish divergence."
Phoenix is far from alone in anticipating a drop to levels below last week's bottom of slightly under $24,000.
Rekt Capital, a prominent investor and analyst, agreed that $20,000 may be a target if present levels fail to hold and buyers fail to materialize. He went on to say that last week's behaviour could have already established a new trading zone for Bitcoin, with the macro range low at $28,800 serving as the cap. "If this is the case, Macro Range Low could develop into the barrier, rejecting price to lower tiers once more," he remarked.
"I'm not certain if we'll be able to get that experiment running around $28.4K," he told his followers on Twitter.
"$30.2K is a major optimistic breach. Overall, Bitcoin is expected to continue to rise to $32.8K. "Bitcoin is linked with risk."
On the broader front, the scenario remained largely unchanged from recent weeks, with equities under stress and the US currency strengthening. The US dollar index (DXY) touched 105 on May 13 and was trying to revisit that mark as of May 16, when it was rejected.
The S&P 500 dropped 0.65% on the day, while the Nasdaq 100 dropped 1.35%.
Twitter stock has once again made headlines, outperforming tech stocks and trading at a lower price than before Elon Musk disclosed his 9 per cent equity position and acquisition proposal.
There were parallels to be drawn with the dotcom bubble, according to a media house chief commodity analyst Mike McGlone.
"If the vulnerability flood continues to recede, one of the top performers in history — Bitcoin — should experience fitting trend reversal, but early uptake days may benefit the embryonic technology/asset,"
He tweeted later that day. "Bitcoin and the S&P 500 both have fallen beneath their 100-week moving averages."