After weeks of constant price decline the Bitcoin price fell below the $20,000 mark on early Saturday morning (European time).
Bitcoin fell below the $20,000 mark to a new low of $18,915. Ethereum fell below $1,000 and is now at $988. According to our previous analysis, the next substantial support level for BTC is between $19,878 and $17,735.
The support level of 17000 dollars is not very strong which makes it possible for Bitcoin to fall to the next level of around $14,000.
In the previous weeks many positions were liquidated and it will be interesting to see if this recent drop in Bitcoin price will cause a cascade effect.
In the previous days, there was alot of speculation on wether Arrows Capital, one of the largest crypto venture capitalists with nearly 18 billion dollars in management would be liquidated in the coming days.
Other large investors are facing similar fates as many of them have over-leveraged their crypto positions.
These liquidations could cause the price of Bitcoin to drop even further.
The fear on the crypto market is high. The Bitcoin fear and greed index is currently at 6.
Stay tuned! We will keep you up to date.
Pascal is a passionate entrepreneur and one of the founders at Blockzeit. As a crypto and blockchain enthusiast his goal is to bring more transparency into the blockchain industry.