Is Bitcoin Price Drop Below $10,000 Inevitable?

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The price of Bitcoin briefly dipped below the crucial support level of $16,500 today and touched a low of $16,497. Ethereum price also fell and rebounded from $1,185. Uncertainty continues to prevail in the crypto market, with total crypto market volume dropping nearly 3% in the past 24 hours. Moreover, the recent purchase of Bitcoin by MicroStrategy has caused confusion in the market.

Where is the bottom of the Bitcoin price?

Bitcoin price is currently trading at $16,591, according to CoinMarketCap. The 24-hour low and high are $16,497 and $16,768 respectively. The price of BTC is at risk of falling to $15,600 if it does not hold above the support level until the end of the month.

Also Read: Bitcoin Price Breaking $17,000 Resistance is Crucial, Here’s Why

Several on-chain indicators such as MVRV, NUPL, Puell Multiple, and SOPR indicate that the BTC price has already reached the undervalued zone. These cycle indicators make it possible to analyze the overall phase. However, it is difficult to predict a correct buying moment.

Low bitcoin price. Source: CryptoQuant

The UTXOs in the on-chain P&L data indicate an exact level where Bitcoin can be considered undervalued. The bitcoin price trend changes when the P&L indicator UTXOs intersect. Historically, the Bitcoin floor was formed during the last three BTC Halvings when the P&L indicator UTXOs were breached.

While the indicators are getting closer, they don’t show the possibility of a cross. Thus, Bitcoin is not yet undervalued or bottomed out. Traders need to keep an eye out for a cross in the future to buy Bitcoin at the right time.

Therefore, the price of Bitcoin (BTC) is likely to decline further, and spot hedging and downtrend trading is necessary.

Bitcoin price at 1 hour. Source: Michael van de Poppe

Crypto analyst Michael van de Poppe believes that the price of BTC may fall to $16,200 if it does not rebound from $16,400. While analyst CryptoCapo thinks the whole crypto market is looking bad and top altcoins may drop another 50%.

On Wednesday, MicroStrategy announced that it had increased its Bitcoin holdings by 2,500 BTC and the total holdings are now at 132,500 BTC. In fact, experts such as BitMEX co-founder Arthur Hayes strongly believe that the price of Bitcoin can reach $100,000 by the end of 2023 or the beginning of 2024.

Also Read: Is This The Bottom For BTC Price To Hit $100,000 In 2023?

Ethereum price looks better than BTC

Ethereum price is currently trading at $1,200. The 24-hour low and high are $1,185 and $1.20, respectively. Thus, the price of ETH is moving strongly against Bitcoin as it failed to reach the support level of $1,170.

Crypto analysts believe that anything above $1,170 would be a good price to buy in the long run. Ethereum price close above support will be bullish for Ethereum in 2023. Nearly 1.24 million addresses hold around 2.27 million ETH at the $1,170 support level.

Also read: Is it $10,000 or $100,000 for Bitcoin price in 2023?

Varinder is a technical writer and editor, technology enthusiast, and analytical thinker. Fascinated by disruptive technologies, he shared his knowledge on blockchain, crypto-currencies, artificial intelligence and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period of time and currently covers all the latest updates and developments in the crypto industry.

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.

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