Bitcoin (BTC-USD) is struggling to hold the $20,000 line. Instability in many cryptocurrency platforms is creating panic in the sector. BTC is the leader that cannot lose its perceived value. The negative inflection point is at around $18,323, the breakout price in November 2020.
Bitcoin traders rely heavily on technical analysis to come up with price targets. They will look at 2020’s breakout year as a guide. Before that, BTC prices hovered at a wide range of between $6,000 - $12,000. The coin is getting plenty of buying support from big names. This could limit the downside risks, at least in the near term.
El Salvador bought 80 more bitcoins at $19,000 each. President Nayib Bukele said that Bitcoin is the future and thanked those selling it cheap. Unfortunately, Bitcoin prices are sharply lower from their November 2021 peak.
Microstrategy CEO bought 480 bitcoins on June 29 for $10 million in cash. Despite massive unrealized losses, CEO Michael Saylor believes the company has no better alternative to bitcoin.
Your Takeaway
Bitcoin could go either direction. Investors cannot predict which way it will go. The charts offer a guide but nothing more. The price will depend on the holding size of big leveraged investors. Margin calls will force a liquidation that pressures exchanges, hedge funds, and Bitcoin prices.
