Bitcoin, the world’s largest crypto continues to see massive selling pressure as we approach what I believe is one of the most important technical levels we’ve seen in some time.

Over the past few weeks, the price of BTC has plunged from highs around $65,000 to recently testing the $30,000 mark. At the time of writing, we’ve seen a small bounce into the $35,000 region, however, I suspect we are facing more downside ahead.

The catalysts for the selling have been many, with the main three being, Elon Musk Tweeting about Bitcoin’s energy consumption and the fact that Telsa will no longer be accepting it as a form of payment. China noting that it won’t be an acceptable form of payment and tightening of restrictions around mining and energy consumption. And finally pending regulation, which we’ve heard from numerous central bankers in recent months.

For now, this has seen its price drop 50% from the highs, but as mentioned, I believe we could see a big sell-off if the $30,000 level drops.

We can see on the chart below, that price is following the volume profile levels very closely. At the moment, the action is around the $35,000 level which is where the bulk of the volume has been in recent times. However, under $30,000 there is a real drop meaning there wasn’t much trading occurring on the way. That means, when price falls, it will likely fall all the way through until it reaches the next real area of volume which is currently around $23,000.

That’s obviously a 33% fall from where it currently sits at the moment, which is significant to say the least.

To be able to recover, price would have to be able to break above the $42,500 level, which at the moment looks a long way off. Caution is advised.