BTC May Drop to Low $20K Levels Warn Traders and Analysts

• The price of Bitcoin (BTC) broke below the key $25K mark over the past 24 hours.
• Several traders warn that the crypto’s price may continue to fall in the next few days.
• At press time, BTC was trading at $24,973.38 following a 3.50% drop.

The price of Bitcoin (BTC) dropped below $25K over the past 24 hours. At press time, CoinMarketCap indicated that the leading crypto’s price stood at $24,973.38 following a 3.50% decline. This negative daily performance pushed BTC’s weekly performance further into the red to -5.17%.

With BTC’s price dropping below the crucial $25K level, many traders and analysts shared their short-term predictions for the crypto. One such trader is Bluntz, who tweeted earlier today that the real test for the market leader in the next few days will be whether it reclaims the $25.6K mark or tests it before continuing to drop in the next few days.

Meanwhile, another trader by the name of Rekt Capital warned that BTC’s price may drop to the lower $20K levels in a post yesterday. In the tweet, he noted that BTC broke below another weekly support level at around $26.6K. If BTC’s price gets rejected by the $26.6K price point in the next few days, then he believes BTC will drop to low $20K levels.

The analyst CryptoCon also gave his take on BTC and shared his analysis in a tweet yesterday. In his post, the trader mentioned that BTC found resistance at $31K, which interestingly, was a key resistance level back in 2016. Not only did BTC get rejected by a 2016 resistance level, but it also found support at a 2016 support level, he added.

From a technical perspective, BTC’s price has dropped below the 9-day and 20-day EMA lines over the past 2 weeks, and has been unable to flip the two technical indicators into support since breaking below the 2 lines on 7 May 2023. Furthermore, the daily RSI line had also crossed bearishly below the daily RSI SMA line on 6 June 2023.

If BTC’s price is unable to reclaim a position back above $26.6K within the next 48 hours, then it will be at risk of dropping even more in the following week. Should this bearish thesis play out, the crypto’s price could fall to as low as $23.2K. On the other hand, successfully reclaiming a position back above $26.6K will see it rise to $28.2K in the following days.

Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.