Bitcoin is barely holding on to the $27,000 level as of April 23 and is now trading at $27,700
DonAlt, an analyst on Twitter has mentioned that Bitcoin may go as low as $20,000
Bitcoin may hit $25,000 as traders have speculated throughout April.
If Bitcoin fails to hold its ground at $25,000, a decline to $20,000 is almost guaranteed
Owing to Bitcoin's price action throughout April, analysts have mentioned that the current bearishness that plagues the cryptocurrency is a "logical and healthy" downturn, with $25,000 serving as a significant "support zone" for Bitcoin's price.
However, according to data from CoinMarketCap and TradingView, Bitcoin is barely holding on to the $27,000 level on April 23 as the Wall Street trading week came to a disappointing conclusion.
Bitcoin currently trades at $27,700 and is still down by 9% over the last seven days.
The cryptocurrency continues to struggle as analysts speak of a possible correction to $25,000.
In light of this drastic change in price action from much of Q1, BTC/USD was down 10% during the previous week, and by -4% overall throughout April, according to Coinglass.
Meanwhile, a prominent analyst on Twitter has shared a few insights as to what might happen in the Bitcoin market very soon.
Is it time to "hang the bull towel", or does Bitcoin have the strength to climb further upwards?
A few days before, DonAlt, a prominent crypto analyst and educator on Twitter shared a few thoughts via several tweets, on how the price action of Bitcoin can go.
The first tweet was sent out on 19 April, just as Bitcoin's rejection from $31,000 was starting to approach $28,000.
In his words, the bulls may "have another chance". However, he mentioned that if the cryptocurrency breaks through the $28,800 zone, it might be time to "hang up the bull towel" and "let the bears do their thing".
In a follow-up tweet on Friday, the analyst said "I'm gonna have to be bearish here for the same reason I was bullish at $16K".
By the time this tweet was sent, Bitcoin had already broken through the aforementioned $28,800 support and DonAlt expressed bearish views as to what might be going on and concluding the tweet with the words: "Expecting top to be in until proven otherwise"
In a later tweet, the analyst said:
A good look at Bitcoin's price charts shows that the bearish trend has been intensifying over the last few days.
The bears continue to gain further control of the market as the day's roll by, and there has been a steady increase in selling pressure as a result.
At the time of writing, Bitcoin has fallen below $28,000, and the bears are trying to drive it lower.
This wave of bearishness went full force after the cryptocurrency failed to surpass the $30k psychological mark earlier this week. There are now bits of speculation as to how far below Bitcoin can go.
As shown by the chart above, Bitcoin is now testing its 50-day moving average and is only inches away from the $25,000 mark.
CoinMarketCap data shows that Bitcoin is slightly bullish over the last 24 hours, and currently trades at $27,700 after losing its footing at the $28,800 zone.
Can Bitcoin hit the $25,000 as widely speculated by analysts?
The answer is yes. Bitcoin can go as low as $25,000.
The RSI on the daily chart has gravitated towards the bearish zones, confirming the strength of the bears over the bulls. And if Bitcoin breaks through this moving average, the next support zone is $25,000.
In the same vein, how possible is a decline to $20,000?
The answer lies in the strength of the bulls around $25,000.The cryptocurrency will have no problems initiating a bounce from $25,000 if the bulls push firmly enough against the bears at this point.
However, the bears are likely waiting at this point and are ready to open short positions at $25,000.
If the bears win again against the bulls at $25,000, then a swift and steep decline to $20,000 is almost guaranteed as DonAlt mentioned.
A decline to $25,000 from this point would cause another -10% dip, while a decline to $20,000 from this point would make a whopping -30% dip.
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