Bitcoin Price at Risk of ‘Nuke’ as Analysts Issue Warning

• Bitcoin (BTC) is at risk of a major price correction, warn analysts.
• Analysts issued a ‘nuke’ warning for BTC prices as it struggles to stay above the $27,000 support level.
• The US SEC’s ongoing regulatory war on crypto assets and entities has driven institutional business away from the US, deteriorating the market’s buying power.

Bitcoin Price Could Fall Significantly

Analysts have warned that Bitcoin (BTC) might be headed for a significant fall as traders issue a “nuke” warning. The world’s largest cryptocurrency is trying to stay above the $27,000 support level.

Bulls’ Last Hope

Independent market analyst PostyXBT noted that the $27,000 support is the “bulls’ last hope”. They expect Bitcoin price to nuke below this level if it fails to hold up. Another trader agreed with PostyXBT and said there was a decent chance of Bitcoin price dropping further if it failed to reclaim its current support level.

Roadblocks Ahead

Cryptoquant’s market analyst MAC_D stated in a note that Bitcoin’s recovery faced several roadblocks slowing down its progress. These include:
• A decline in US BTC holdings as an increase in US institutional investors’ BTC holdings often coincided with a price rally for the crypto asset but due to regulations by SEC, institutional business moved away from US resulting in steady decline in BTC holdings here.
• Total supply of stablecoins has also declined which might affect traders use of stablecoins to purchase crypto assets like Bitcoin as it indicates market’s buying power.

March Recovery Not Likely To Repeat

PostyXBT noted that Bitcoin price might fail to repeat its March recovery which deviated from its bearish structure and started rallying instead. However, they argued that current price structure does not back this hypothesis up either way.

Bottom Line

Overall, analysts are expecting a significant fall in Bitcoin prices unless bulls manage to keep them above $27,000 support level or if some other development happens which can help recover its bull run again soon enough before it falls too low below this point .