Bitcoin and Ethereum price again successfully defended their respective key areas at $20,000 and $1000. The asset is currently under heavy bearish pressure which is often challenged by the bulls to maintain the support level. However, as happened with the $30,000 support level, similar price action is likely to be repeated as these levels may also succumb to the bears very soon.
Not long ago, the price of BTC was at the $30,000 price level for almost a month. However, the Celsius Network crisis created extreme upward pressure which forced the price to plunge deeper into a bearish well. There is no doubt that the asset has defended the $20,000 level twice, but after the support area eventually lost its strength, the asset barely recovered.
One of the popular analysts here wrote why the $20,000 and $1000 levels cannot be held for a long time.
The analyst lists 3 key points here that could bring the BTC price below $20,000 very soon. As the market is currently quite bearish, traders can continue placing their sell orders with only a slight spike. On the other hand, Open Interest (OI) may continue to build up which indicates that the current trend may continue further. And furthermore, a sustained trend may eventually kill the demand in the market.
On the other hand, previous BTC highs below $20,000 remain unattainable for quite some time. The asset slipped through these levels in Q4 2020 and maintained a strong bounce without a correction or retracement. Therefore, the chances of a retest of these levels above $20,000 are very high. And hence the lower support of $18,000 in such situations could keep BTC price in check for some time.
Similar price action can be predicted for Ethereum (ETH) price, where it could soon succumb to the losing bears at the $1000 support level. Therefore, if the price of Bitcoin (BTC) declines from the previous ATH to $19,696, the price of ETH may also drop below the $800 level to the $750 level soon.