Bitcoin Unlikely to Drop Below $30,000, Crypto Analysts Explains

Friday 15 January 2021, 2:48 AM AEST - 5 days ago


Bitcoins price has been rather volatile over the last few weeks. The cryptocurrencys recent plunge that wiped around $200 billion from the crypto space scared investors, but a key support level may be being held by institutional investors.

The price of bitocin how a new all-time high near $42,000 this month, after surpassing its previous all-time high in mid-December in a bull run that some believed was bolstered by institutional investors adding exposure to the cryptocurrency.

Over the weekend, however, BTCs price plunged from its new high to around $30,500, and has since recovered to $38,700 at press time. While the price has recovered, investors still believe it may soon fall.

Ki Young Ju, CEO of on-chain analytics firm CryptoQuant, asserted that many institutional investors bought the flagship cryptocurrency above $30,000 , and speculated that if they were indeed behind the bull run, they will be protecting BTC at $30,000.

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.

— Ki Young Ju 주기영 (@ki_young_ju) January 13, 2021

Even if bitcoin fails to hold the $30,000 level, he speculated it wont drop below $28,000 which could be a fresh start for institutional investors. CryptoQuants data analyses institutional investment partly based on Coinbase outflows.

As reported, earlier this year $1.7 billion outflows from Coinbase suggested institutions bought large amounts of BTC even above the $30,000 mark. The outflows could represent institutional investment, according to the CEO, as the funds are moved to custody-looked-like wallets, potentially after Coinbase sets up a cold wallet for its customers from ove ...

Read full story on CryptoGlobe

Disclaimer: The content and views expressed in the articles are those of the original authors own and are not necessarily the views of Crypto News. We do actively check all our content for accuracy to help protect our readers. This article content and links to external third-parties is included for information and entertainment purposes. It is not financial advice. Please do your own research before participating.