• Bitcoin (BTC) price might be heading for a major correction as analysts issue ‘nuke’ warning.
• BTC is trying to stay above the $27,000 support level.
• Analysts note that macro issues such as declines in US BTC holdings and total supply of stablecoins could hurt the rally.
Bitcoin Price Correction Looms
Analysts have warned that Bitcoin (BTC) price might see a major correction, with some traders even issuing a “nuke” warning for the world’s largest cryptocurrency. At present, BTC is trying to hold on to the $27,000 support level.
Trouble Ahead?
Independent analyst PostyXBT noted that the $27,000 support is the “bulls’ last hope” and that it expects BTC price to nuke below this level if it fails to reclaim it. Another trader agreed with PostyXBT and stated there was a decent chance of Bitcoin price dropping further. Crypto analyst TraderSZ set a target near $23,000 for Bitcoin should the immediate support fail.
March Recovery Unlikely
PostyXBT also stated that Bitcoin price might fail to repeat its March recovery due to current market conditions being different from those during March’s rally. Moreover, macro issues could potentially hurt BTC’s recovery efforts according to Cryptoquant’s market analyst MAC_D who highlighted declines in US institutional investors’ holdings of Bitcoin as well as drops in total supply of stablecoins used by traders for purchasing crypto assets like BTC.
Holding Support Key
At present, it remains to be seen whether bulls can manage to hold on to the $27,000 support or whether they will succumb under pressure from bearish forces and cause a significant drop in Bitcoin prices over the coming days or weeks.
Conclusion
Analysts are warning that Bitcoin (BTC) prices might be headed for a significant fall if bulls cannot maintain their grip over key support levels such as $27,000. The decline could be hastened by macro-level issues such as declines in US institutional investors’ holdings of Bitcoin and drops in total supply of stablecoins used by traders for purchasing crypto assets like BTC.