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Bitcoin Price Breakdown Targets $25,000 As Investors Remain Positive

January 21, 2021 at 17:46 by Ibrahim Anifowoshe

After reaching an all-time high of $42,000, Bitcoin is in the bear market as it slides under $32,000. The crypto is risking a drop to under $30,000 before the end of the week.

Bitcoin is on the fringes of a massive fall after losing crucial support level. As the flagship cryptocurrency continues to trade at a crucial junction, there’s a mix of views coming from institutions on Bitcoin. The cryptocurrency was rejected $38,000, opening the Pandora box. The market is unsettled mainly because of Bitcoin drop under $32k.

On Thursday, January 21, at 5:02 GMT, the price of a Bitcoin was trading at $31,397, plunging at 10% within the last 24 hours. If the buyer congestion at this level is dispersed, we can expect the price to fall further to lower levels.

The pessimistic outlook appears to have been validated by the Relative Strength Index’s freefall toward the oversold area. If investors start panic selling their BTC holdings, the pioneer cryptocurrency is expected to likely experience a bearish leg overshooting to primary support at $28,000 and making an approach towards $25,000.

Grayscale’s investments continues

Despite these, investors sentiment seems to remain on the optimistic side. Grayscale Investment’s consistent purchase of BTC went unnoticed. The largest digital asset manager in the world made two large investments to its Bitcoin trust in less than two weeks. The company spent $509 million in purchasing BTC in the first buying round. In the second purchase, the company took advantage of the cryptocurrency’s dip to $34k and purchased 8,000 (or $272,000,000) more BTC.

The extent of the ongoing dip is unknown. The volatility of Bitcoin is well established. However, retracements is common in the BTC market. Hence, investors may see the dip as an opportunity to acquire more holdings or enter the market. Though it’s advisable to wait for a confirmation of a bull rally before investing it all in Bitcoin.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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