- Analysts predict a possible drop in Bitcoin’s price to $12,000 if support levels are lost on the $15,000 range.
- Bitcoin whales took profits when BTC touched $19,300 causing the crash of the crypto market.
After weeks of significant gains, the price of Bitcoin seems to be entering a consolidation phase. The cryptocurrency seemed destined to break its all-time high by the end of the year. Although that possibility remains, analysts currently advise caution.
At the time of publication, Bitcoin has managed to recover slightly and stands at $17,073 with a 0.43% gain in the last 24 hours. In the weekly chart, BTC presents a loss of 8.92%. In the monthly chart (+29%), BTC is still one of the biggest winners after XRP (123%), XLM (160%), Cardano (43%), and Ethereum (31%).
Trader Peter Brandt is known for predicting major drops in the crypto market. In a recent analysis, Brandt just did that and stated that despite the crash, Bitcoin’s price has not yet reached its bottom yet. According to him, BTC could drop up to 37% and thus fall to $12,000 again.
However, historically, it has not been unusual for the cryptocurrency to present these corrections before reaching new highs. On the market sentiment, Brandt said:
The interesting thing about the psychology of market speculation is this – many traders who swore they would be buyers of a big dip when price was above $19,000 will actually become sellers under $15,000.
In the same vein, trader Michaël van de Poppe also expects a decline. According to the analyst, the cryptocurrency could correct to $15,000. This zone would act as a critical support level and could bring BTC close to its mid-year price.
We also have one around $13,600 to $14,000, which is the high of the summer. It’s not likely that we’re going to break anywhere further than that towards $12,000. I think that the $13,600 to $14,000 level is already the level that we’re going to sustain.”
Josh Rager also agreed that $15,000 seems to be an important support for Bitcoin. With regard to a possible upward trend, Rager stated that Bitcoin is currently retesting $17,160. At this level, he wants to see the flip for an upward movement. “Next sticky area is around $17,650 to $17,800 which was previous support prior to the breakdown. Reclaim there and I think that’s a nice start for the price as it should likely move to mid $18ks”, as Rager analyzed.
Bitcoin whales stop price before all-time high
Another interesting aspect of the crypto market is currently the activities of Bitcoin whales. In this respect, Santiment registered an increase in the activities of Bitcoin investors with more than 1,000 BTC. According to the data analysis company, there was a massive sell-off when BTC reached $19,300. Whale investors probably took profits before BTC reached its peak price of $20,000.
Based on this, Bitcoin could continue the bearish trend in the short term as the whales continue to send funds to the exchanges. In the medium term, the institutional demand for Bitcoin could remain a major factor. As CNF has reported, PayPal alone is buying about 75% of the Bitcoin produced and could increase buying pressure as it prepares to expand its crypto service to international clients during Q1 2021. The world’s largest crypto asset manager, Grayscale, continues to buy Bitcoin for its customers at a record pace.