Forget Bitcoin Hitting $70,000, Prices Must First Fall To This Key Support Level

bitcoin enthusiasts may need to temper their expectations of a quick rise to $70,000. On January 28, a crypto analyst believes that the world's most valuable currency must fall back to $30,000, a critical support level, before resuming its uptrend.

bitcoin must fall: on the way to $30,000?

CryptoCon, a crypto analyst, appointment historical price behavior to support this claim. Specifically, the argument is that no bitcoin cycle has reached its recent high without first checking the monthly least squares moving average (MA).

Currently, this MA is at $30,358. If past performance is anything to go by, CryptoCon believes bitcoin could likely fall to this level before prices rebound sharply.

The bitcoin analyst notes that the MA has consistently acted as a floor for bitcoin prices, even during periods of high volatility. CryptoCon claims that the only outlier was the 2019 bear market, triggered by the COVID-19 Black Swan event.

The analyst further acknowledges that although some observers say bitcoin has bottomed, more confirmations may be required. According to CryptoCon's analysis, there is not enough data to support this claim. The analyst states that, based on how prices have behaved in the past, it is very likely that the currency will fall to $30,000 in February or March.

A contrary position: Wall Street accumulates btc

This prediction may disappoint some bitcoin holders who are eagerly anticipating a strong recovery to $70,000 and higher. This optimistic preview comes after the United States Securities and Exchange Commission (SEC) recently approved multiple spot bitcoin exchange-traded funds (ETFs).

Although prices fell, due to the massive liquidation of Grayscale bitcoin Trust (GBTC) shares by, among other investors, FTX, the defunct exchange, prices recovered over the weekend. Spot bitcoin ETF issuers, including Fidelity and BlackRock, have been buying btc en masse over the past few weeks. Analysts have interpreted this as a net benefit for prices. This development could lift sentiment and take the currency to January 2023 highs soon.

However, looking at the CryptoCon preview, it appears that the analyst is taking a contrarian position, expecting prices to move against the general public. It remains to be seen if this pullback will help anchor btc and build a more sustainable long-term trend.

According to the sentiment chart, fear and greed index, the bulls expect the prices to rise in the coming sessions. According Coinstatsthe index reading is 55, up from 50 last week.

Featured image from Canva, TradingView chart

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