Bitcoin (BTC) has been on a mission to breach the all-time high (ATH) price of $41,500 it set recently, but corrections have been inevitable. The leading cryptocurrency had been on overdrive thanks to a remarkable spending spree by institutional investors who made record-breaking moves. Nevertheless, profit-taking tendencies by some investors have caused BTC not to surge past the $41,500 as the price is trading at $35,076 at the time of writing. 

Bitcoin's Key Support Level is at $27000-27,500 if BTC Pullbacks below $30,000, says Analyst

Alex, a market and crypto analyst, has acknowledged that the $27,000-27,500 is the critical support level, which ought to be watched. He explained:

“$27500-$27000 is the key area. If the price heads back down to 30K, expect 30K to be breached, fall to that area, and bounce back. FAST. All very fast.”

Bitcoin's Key Support Level is at $27000-27,500 if BTC Pullbacks below $30,000, says Analyst

A blast off to $50,000 might be on the horizon

The analyst alluded to the fact that this is the expected scenario if Bitcoin’s trading volume diminishes. He added: 

“Range within 30K-40K. Vol comes down. Then either briefly down to 27K to then blast off to 50K, or straight to 50K.”

However, he pointed out that this price retracement might help prompt a bounce to the $50,000 level. A price retracement towards the $27,000 level will see altcoins tagged along by shedding off 35%-50% in intraday trades. Alex believes that the best-case scenario will be buying altcoins compared to Bitcoin. 

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This analysis commensurates with an observation made by Ki Young Ju, the CEO of on-chain data provider CryptoQuant.com, who noted that many institutional investors bought Bitcoin at the $30-32k level, so they felt obligated to put up a shield. He stated:

“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.”

Time will tell how Bitcoin plays out going forward.  

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