As Bitcoin (BTC) Breaks Down Under $33,000, Here Are Key Levels to Watch Out

Published July 9, 2021 | Updated July 9, 2021


As Bitcoin (BTC) Breaks Down Under $33,000, Here Are Key Levels to Watch Out

Thursday, July 8, saw another bloodbath on Satoshi Street with Bitcoin (BTC) and altcoins coming crashing down in the early hours. At press time, Bitcoin is trading 2.57% down at $32,556 levels with a market cap of $608.

The world’s largest cryptocurrency has been showing high volatility over the last few weeks but remains range-bound between $31,000-$35,000. Citing the Fibonacci retracement levels on technical charts, Craig Johnson, chief market technician at Piper Sandler, points out key support and resistance levels. Speaking to CNBC, Johnson noted:

“We broke out in January. A few months ago, we made this peak. I actually would go back and put the retracement levels on top of bitcoin, and when you see that, you can see that around 33,000 to 34,000 is a very important retracement level”.

Courtesy: CNBC

However, Johnson adds that BTC has already corrected over 45% from its peak in April 2021. Thus, he believes that BTC is unlikely to correct further but at the same time, he does spot a prolonged period of consolidation. He notes that historically, these consolidation cycles have lasted for around 1000 days.


On the other hand, Blue Line Capital President Bill Baruch told CNBC that he’s waiting for the next big opportunity to add more BTC to his portfolio.

“Give me $25,000 on bitcoin, and I’d be buying more. I’ve been in the space since 2017. There’s times where I’m in it, there’s times when I’m not, I totally exited through early this year,” he added.

BTC Funding Rates Negative, Novogratz Stays Bullish

One bullish indicator for Bitcoin investors is that since the May correction, the Bitcoin funding rate on perpetual futures has remained negative. Positive funding rates usually indicate the market tops while negative funding rates are followed by price jumps.

Speaking of these recent developments, Wall Street veteran and Galaxy Digital CEO Mike Novogratz spoke about how Bitcoin is at the center stage of the emerging cold war between the U.S. and China. With China declaring war on BTC and crypto, the U.S. hedge funds have continued to accumulate it in big numbers.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Bhushan Akolkar 606 Articles
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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