• Bitcoin (BTC) could be facing a significant fall, as traders issue a ‘nuke’ warning
• US BTC holdings have decreased and the total supply of stablecoins has declined, adding to roadblocks in its recovery
• Analysts believe that BTC might not be able to reclaim the $27,000 support level
Bitcoin Price Might Be Headed for a Fall
Several traders have issued a ‘nuke’ warning for BTC prices, indicating that Bitcoin might be headed for a major price correction. The world’s largest cryptocurrency is trying to stay above the $27,000 support level, which is seen as the “bulls’ last hope.” According to analysts, if BTC fails to reclaim this level then it may nuke below it.
Macro Issues Could Hurt Bitcoin Price Rally
The market analyst MAC_D stated in a note that Bitcoin’s recovery faces several roadblocks such as the decline in US BTC holdings. Institutional investors typically buy more crypto assets like bitcoin when their holdings increase; however, recent regulatory wars on crypto assets and entities have driven institutional business away from the US. Additionally, MAC_D noted that there has also been a decline in the total supply of stablecoins—a factor which traders use to purchase bitcoin—which indicates diminished buying power in the market.
Analysts Fear That March Recovery Might Not Repeat
In March of this year, Bitcoin deviated from its bearish structure and started an unexpected rally. However, PostyXBT noted that based on current price structure, it does not look likely that BTC will repeat this pattern again.
Traders Issue Nuke Warning For BTC Prices
Independent market analyst PostyXBT and another trader agreed with his assessment saying there is decent chance of Bitcoin price dropping further should the immediate support fail. TraderSZ set a target near $23,000 for Bitcoin should this happen while PostyXBT expects it to nuke below $27K mark.
Conclusion
Overall sentiment from analysts is bearish due to macro issues such as decrease in US holdings and total supply of stablecoins diminishing buying power in the market. Additionally they fear March recovery might not repeat itself under current conditions and suggest short positions against Bitcoins if it fails to hold at current position or break through $27K mark leading into further plummeting prices down towards $23K mark.