Bitcoin Must Maintain Support to Avoid Severe Selling Pressure

Spot versus Futures Bitcoin Pricing

Bitcoin is trading nearly 3 percent higher on the day at $31,030 as of 4:45 PM EST (Coinbase). At $30,990, BTC futures trade below their spot counterparts, confirming the pessimistic market mood. When future pricing of a commodity or asset is lower than the spot or live pricing, it indicates that market participants anticipate the item or commodity's price will likely decline in the future.

Technical Analysis of BTC

If we perform a Fibonacci retracement from Bitcoin's price a week ago at around $40,000 to yesterday's lows at approximately $30,000, it is evident that Bitcoin failed to surpass the 23 percent retracement level, which is approximately $32,130, on its rebound higher today. This suggests further price prices are anticipated.

If Bitcoin fails to maintain support at $29,00, then $20,000 is a distinct possibility. Even in the worst-case situation, I believe Bitcoin will be able to maintain a value of $10,000. However, if we were to reach that price, it would necessitate a loss of over 60 percent. Bitcoin must therefore maintain its current support to prevent a further carnage and prices not seen since 2020.