01 June 2023 17:05, UTC
Reading time: ~2 m
After breaking above $30,000 in April for the first time since June 2022, Bitcoin (BTC) experienced a notable price drop in May, ending the month at around $27,200.
However, that might not be the end of Bitcoin’s declines in the short term, crypto expert Altcoin Sherpa noted in his latest YouTube video price analysis on Thursday, June 1.
Notably, the crypto analyst believes Bitcoin could drop to as low as $23,000, citing data from several technical analysis (TA) indicators, including the 200-week exponential moving average (EMA), support and resistance levels, 200-day EMA, and the 0.382 ratio Fibonacci level.
“$25k level would make a lot of sense to me personally,” Altcoin Sherpa said, as he pointed to the aforementioned indicators on a Bitcoin chart. “There’s just a lot of confluence with $25k.” If Bitcoin were to break below that area the cryptocurrency’s price would drop quickly, violently, and fast, he noted.
“When these support levels break they break violently and it wouldn’t surprise me at all to see something like a blitz down to like 23k lots of volatility and then some sort of reclaim at this 382 level (Fibonacci).”
– Altcoin Sherpa said in his video analysis.
What happens if BTC drops to $25k?
Further in the video, Altcoin Sherpa commented on the possible implications of BTC dropping to his predicted price of $25,000.
In that view, the crypto analyst pointed to the current support level on the BTC chart, which has been around $26,500 for several weeks now.
Sherpa said he personally believed this could happen because he does not think Bitcoin has hit bottom yet, as such levels are usually formed after “a big move down,” he added.
Bitcoin price analysis
At press time, the world’s biggest crypto coin was trading at $26,897, down 0.4% in the past 24 hours.
Over the past month, the cryptocurrency fell more than 4.1%, although its year-to-date gains remain strong at more than 62%.
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