Institutional Buyers May Be Defending Bitcoin From Breaking Below $30,000
- Where the entire market heads in the short-term will undoubtedly depend on BTC and its continued reaction to its key near-term support
- So far, the buying pressure seen between $30,000 and $33,000 has been promising and could indicate that further upside is imminent
- One on-chain analyst is also noting that this happens to be the price region where tons of institutional buyers had entered earlier this month
- As such, these groups may be ardently defending against a drop below this level
Bitcoin and the entire crypto market have been facing an intense bout of selling pressure throughout the past several days.
BTC has yet to break below this key support level, and one analyst believes that institutions may be the ones defending it against seeing further downside.
BITCOIN GAINS MOMENTUM AS BULLS SPARK TREND REVERSAL
This allowed the cryptocurrency’s price to rocket up towards $35,000, which is a level that it is now attempting to surmount.
If bulls can flip this level into support, it could provide a base that allows BTC to begin expanding back up towards $40,000 in the near-term.
INSTITUTIONS MAY BE THE ONES GUARDING $30,000
In a recent tweet, he explained that $30,000 to $32,000 is where many institutions first began accumulating Bitcoin. As such, they are likely keen on it not seeing a break below this level.
“There are many institutional investors who bought $BTC at the 30-32k level. The Coinbase outflow on Jan 2nd was a three-year high. Speculative guess, but if these guys are behind this bull-run, they’ll protect the 30k level. Even if we have a dip, it wouldn’t go down below 28k.”
The coming few days should shed some light on where the entire crypto market will trend next, as Bitcoin has had a strong influence over altcoins over the past couple of weeks.