Heavy BTC Drop Is Expected If $18,700 Level Is Not Sustained: Analyst

A heavy BTC drop is expected if the $18,700 level is not sustained with Bitcoin entering a period of consolidation. Following the recent developments, we are taking a closer look at the Bitcoin price news and analysis.

The coin is now trading for $19,200 as it bounced from the local lows but also failed to surpass the $19,500 resistance level so one analyst thinks that BTC will face a correction towards $17,000 if it manages to close under $18,700. Bitcoin seems primed to hold the level for the time being and analysts remained long-term bullish on the leading crypto as the major institutional players are entering the space.

Bitcoin entered a period of consolidation and topped the $19,900 level a few days ago. The coin is now trading for $19,200 as it bounced from the local lows but it also failed to surpass the $19,500 resistance level. one analyst thinks that a heavy BTC drop is expected towards $17,000 if it manages to close under $18,700:

 “The 3D $BTC chart to me isn’t looking too hot. Close back around 18.7k tonight and we likely get some awesome long entries in the next week or so. Around 16.9-17.1k I have big boy money waiting for some longer term #bitcoin.”

The $18,700 level was an important technical level for BTC over the past few days. The trader shared a chart where he pointed out that the $18,000 is of huge importance. Another analyst that was historically accurate believes that BTC will be bullish as long as it manages to hold the $18,500 region. BTC remains bullish in the long-term because of the institutional adoption but Niall Ferguson, the financial analyst recently said:

 “The acceptance of Bitcoin as a digital asset, a quasi-digital gold, has been accelerated by this pandemic. Almost every month, some major figure in the mainstream investment world has said,  ‘OK, now I’ll take BTC  seriously.’ This process of institutional adoption has further to run.”

Also, as of today, Microstrategy announced that it is trying to raise $400 million in a debt security sale where the funds will be used to buy BTC:

 “MicroStrategy intends to invest the net proceeds from the sale of the notes in bitcoin in accordance with its Treasury Reserve Policy pending the identification of working capital needs and other general corporate purposes.”