Bitcoin and Ethereum prices have successfully defended their critical zones of $20,000 and $1,000, respectively. The assets are currently under a lot of negative pressure, and the bulls are fighting hard to keep the support levels in place. However, the same price behaviour may be reproduced since these levels may potentially bow down to bears very soon, similar to what happened with the $30,000 support levels.
Previously, the BTC price had been hovering around $30,000 for about a month. On the other hand, the Celsius Network problem put enormous upward pressure on the price, forcing it to fall deep into a bearish well. The asset has undoubtedly defended the $20,000 levels on a few occasions, but if the support zone loses its power, the asset tends to drop hard.
One of the most well-known analysts here explains why the $20,000 and $1000 levels may not be sustained for long.
The expert identifies three major factors that could cause the BTC price to drop below $20,000 in the near future. Because the market is now negative, traders could continue to place sell orders with only a modest bump. On the other side, the Open Interest (OI) may continue to rise, indicating that the current trend will continue. Furthermore, the market’s demand may suffocate if the current trend continues.
The prior BTC highs slightly below $20,000, on the other hand, have remained unnoticed for a long time. In Q4 2020, the asset cut through these levels and continued on a strong upward trend without a correction or retracement. As a result, the chances of these levels penetrating through $20,000 are exceedingly significant. As a result
Similar market action is possible for Ethereum(ETH), which may soon succumb to bears and lose the $1000 support levels. As a result, if Bitcoin’s (BTC) price falls below $19,696, ETH’s price may go below $800 and reach $750 levels in the near future.
