• Bitcoin (BTC) price may be headed for a significant drop, according to analysts.
• BTC is trying to stay above the $27,000 support level.
• Macro issues such as US SEC’s regulatory war on crypto assets and declining stablecoin supply could hurt the rally.
Bitcoin Price Headed For Drop
Analysts have issued a ’nuke‘ warning for BTC prices, expecting it to drop below the $27,000 support level. Independent market analyst PostyXBT noted that this is „bulls‘ last hope“. Another trader agreed with PostyXBT, claiming that there is a decent chance of Bitcoin price dropping further.
Macro Issues Could Hurt Rally
Cryptoquant’s market analyst MAC_D highlighted that Bitcoin’s recovery is facing several roadblocks. An increase in US institutional investors’ BTC holdings often coincide with a price rally but due to US SEC’s ongoing regulatory war on crypto assets and entities, recent months have seen a steady decline in BTC holdings in the US. Additionally, the total supply of stablecoins has also declined which could reduce buying power in the market.
March Recovery Unlikely To Repeat
PostyXBT noted that Bitcoin might not be able to repeat its March recovery due to its current price structure not supporting it . In March this year, Bitcoin deviated from its bearish structure and started rallying again which some traders are hoping will happen again soon.
Bulls Must Hold $27K Support Level
TraderSZ stated that things are „not looking good“ for BTC unless bulls manage to hold on to $27,000. They expect a target near $23,000 if immediate support fails.