Bitcoin‘s price plummeted to its lowest level in over two months following news that SpaceX has reduced its BTC holdings. According to data from TradingView, BTC prices had been trading sideways within a narrow range for a long period of time before this trend ended on August 17th. With the sudden break in the bull market, market observers are wondering what the future holds for Bitcoin.
The Most Critical Support Level for Bitcoin
Before the news of SpaceX’s value loss that caused both Bitcoin and altcoins to decline, investors were hoping that $28,000 would provide strong support. Bitcoin had multiple support trend lines and the psychological safety net of the $28,000 mark, which was working in its favor.
However, according to popular crypto investor and educator Gareth Soloway, the focus has now shifted to the $25,000 level when it comes to BTC buying.
“Technically, the $28,000 level has been broken. It has about 24 hours to reclaim this level, otherwise the probabilities greatly increase towards the $25,000 level. $25,000 will be an epic level for Bitcoin psychologically.”
Soloway mentioned that when BlackRock announced its plans for a Bitcoin spot-priced exchange-traded fund (ETF) in the US, BTC/USD was trading around the $25,000 range, and after the news, the price was hovering above $30,000. The decision regarding the launch of the Grayscale Bitcoin Trust (GBTC), another US spot ETF, could lead to another surge in the market.
“The news of BlackRock applying for a spot ETF came out here. The rise from $25,000 to $31,000 was largely a result of the optimism created by its likely approval.”
The Lowest Level for Bitcoin: $9,000!
However, in the downward direction, although untouched since mid-March, the $20,000 mark still appears to be a significant support on the chart.
“If the $20,000 support fails, it will likely test the 52-week average, which is around the $15,700 level. $12,000-$13,000, a lower target like $9,000-$10,000, is still on the table.”
Soloway said he doesn’t see a reason for a break below the November 2022 cycle base – unless there is a mass sell-off in risk assets that would take US stocks back to those levels. BTC/USD last traded below $10,000 in September 2020.
