Popular crypto analyst PlanB has shared analysis today following a significant price drop in the crypto market. His comments come as the world's largest cryptocurrency marks a sharp drop from a 2022 high earlier this month. BTC is currently trading at $ 40,000, about 20% below its annual high, and has slipped more than 40% from a record high in November.
BTC has reached below support levels at $ 40,000 for a while. Yet the most important support level or worst -case scenario is around $ 24,000. This price level represents the lowest price that can be borne by most old market holders and it is considered still trading at a profit.
PlanB dismissed concerns that BTC could plummet to $ 24,000. For that matter, it takes a huge amount of negative sentiment to be able to push a fall to that level. The last time this happened was in 2018 during the Bitcoin Satoshi Vision (BSV) fork. The creation of the hard fork in 2018 has almost split the BTC community.
Although BTC appears to have reached the support level at $ 40,000, it is still trading in the limited range seen for most of the year. The broader crypto market, for the most part, also seems to follow this range.
Various macroeconomic concerns, coupled with monetary tightening by the central bank have weighed on market sentiment in recent months. Investors are also worried about the economic impact of the Russian-Ukrainian conflict so that oil prices soar.
So far altcoin is seen showing more performance than BTC at the moment. Nevertheless, altcoin’s total market share is approaching its lowest level this year, at 41%.
