Bitcoin continues to show signs of weakness as the BTC price declines further all the way closer to $26,000. As of press time, Bitcoin is trading 3.5% down at a price of $26,303 with a market cap of $511 billion.
Amid the current downward spiral, Bitcoin has been breaking under crucial support levels which shows that the correction is far from over and there’s more pain ahead. As per popular crypto analyst Ali Martinez, there’s a possibility of the BTC price dropping all the way to $23,000. In his recent tweet, Martinez writes:
“Notice that #Bitcoin appears to be losing all major areas of support. This increases the probability of a correction to the next important demand wall between $23,200 and $24,000, where 850,000 addresses had previously purchased 340,000 BTC”.
The current selling pressure on Bitcoin increased over the last hours as the US markets opened on a negative note. All of the top-three US indices are down by 0.7% as of press time, as the debate over raising the debt ceiling drags into another day.
As the negotiations between the lawmakers continue, investors remain worried about the potential outcome as the deadline of early June approaches, and whether the US will default on its debt. This could potentially send shockwaves across the broader crypto market.
Is additional Harm Possible In Bitcoin and Crypto?
Crypto analyst Michael Van de Poppe stated that it wouldn’t be prudent to make any fresh entry into Bitcoin at this point. Popper writes: “Breaking south, as $27K wasn’t flipped, which means we’ll be testing lower and sweeping $26K, most likely. Acceleration at the moment, so waiting for a clear bullish divergence to pop up for an entry”.
He further added: “Total market capitalization for #Crypto is getting into the areas of the 200-Week MA and EMA. Moment of truth is coming up. Breaking beneath, and some additional harm will be there”.