Bitcoin price, throughout the past week, has maintained a significant uptrend after breaking from lower support. Currently, testing one of the crucial levels of the last trading day, the asset might experience a slight pullback. These levels are also important as the resistance level around $41,900 is also the neckline for the double bottom pattern formed. And so an escape may be imminent but wait, there’s a catch!
Overall, the BTC price in a weekly framework exhibits a bearish break of the trendline. And therefore, if the asset slips from these levels, then witnessing a deep breakout near the lower support may be imminent. According to one of the popular analysts, the price of Bitcoin could also drop below $35,000 to reach support levels of $33,000, if it does not hold.
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On the other hand, reserve balances on exchanges have been depleting very hard for a long time. It had peaked just before the May 2021 crash, which jumped from lows somewhere in late 2018. Currently, balances on exchanges are at similar levels to November 2018. During the previous two Once, the balance broke those levels, rebounded strongly as the price continued to fall.
Hence, a huge possibility of the asset collapsing towards the lower support arises. As the balances on the exchanges are about to increase, which is mainly due to excessive sales. Hence the slide of Bitcoin (BTC) price towards the lower support levels. If not acted on in time, the asset could see the $33,000 support again very soon.
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