Bitcoin price breakdown targets $25,000 despite investor sentiment remaining positive

John Isige Bitcoin News PublishedJanuary 21, 2021 | ModifiedJanuary 21, 2021

Bitcoin price breakdown targets $25,000 despite investor sentiment remaining positive

  • Bitcoin slides under $33,000 risking a drop under $30,000, especially if the 50 SMA support fails to hold.
  • Grayscale Investment’s consistent purchase of Bitcoin goes unnoticed as the market falls.

Bitcoin is on the verge of a massive breakdown after losing a crucial support level. The pioneer cryptocurrency was rejected $38,000 again, opening the Pandora box. A gust of wind is swimming across the cryptocurrency market, mainly accentuated by BTC’s drop under $33,000.

At the time of writing, Bitcoin is doddering at $32,800 amid the uphill battle to keep the price within the confines of the descending triangle pattern. If the buyer congestion at this level is dispersed, we can expect the price to explore lower levels; first at the 200 Simple Moving Average and perhaps the former support at $30,000.

The pessimistic outlook appears to have been validated by the Relative Strength Index’s freefall toward the oversold area. Similarly, more downside action will come into play if the 200 support fails to hold. Additionally, if investors start panic selling, the bearish leg is likely to overshoot the primary support at $28,000 and make an approach toward $25,000.

BTC/USD 4-hour chart

BTC/USD price chart
BTC/USD price chart by Tradingview

Investor sentiment has remained high despite Bitcoin’s retreat from $42,000 (an all-time high). This is evidenced by Grayscale Investments’ additional purchase of Bitcoin. The largest digital asset manager in the world has made two gigantic investments to its Bitcoin Trust in less than two weeks. In the first purchase, the company spent 509 million to buy BTC while in the second, it took advantage of the dip to $34,000, purchasing 8,000 more BTC.

The extend of the ongoing bull run is unknown but retracements are common in markets like these. Therefore, the dip could be an opportunity for investors to enter the market or increase their positions. However, it is advisable to wait for confirmation of a rebound before going all-in on Bitcoin.

Bitcoin intraday levels

Spot rate: $32,800

Relative change: -2,270

Percentage change: -8%

Trend: Bearish

Volatility: High

Post your comment...
John Isige 848 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
Follow John @