Bitcoin & Ethereum prices yet again successfully defended their respective crucial zones at $20,000 & $1000. The assets are currently undergoing huge bearish pressure which is being challenged by the bulls often to maintain the support levels. However, similar to what had happened with $30,000 support levels, similar price action may be replicated as these levels may also bow down to bears very soon.
Sometime before, the BTC price was holding $30,000 price levels for nearly a month. However, the Celsius Network crisis created immense upward pressure that compelled the price to dive deep into a bearish well. No doubt, the asset has defended the $20,000 levels a couple of times, but eventually after the support zone losses its strength, the asset tends to tank down hard.
One of the popular analysts here pens down that why the $20,000 and $1000 levels may not be held for a long time.
The analyst here lists 3 main points that could fuel the BTC price plunge below $20,000 soon. As the market currently is pretty bearish, the traders could keep on placing their sell orders with just a minor spike. On the other hand, the Open Interest (OI) may keep on building which indicates the present trend may be continued ahead. And moreover, a continued trend may eventually kill the demand in the market.
On the other hand, the previous BTC highs just below $20,000 remain unattended for quite a long time. The asset sliced through these levels in Q4 2020 and maintained a strong upswing without a correction or retracement. Therefore, the possibility of revisiting these levels piercing through $20,000 is extremely high. And hence in such conditions the lower support at $18,000 may hold the BTC price for some time.
Similar price action may be speculated for the Ethereum(ETH) price where it may soon bow down to bears losing the $1000 support levels. Therefore, if Bitcoin’s (BTC) price losses it’s previous ATH at $19,696, then ETH’s price may also slide down below $800 to hit $750 levels soon.