The ongoing selling pressure in the cryptocurrency market continues to impact the leading digital currency Bitcoin, causing it to lose further ground. Bitcoin’s price has been falling for seven consecutive days, resulting in an 11.3% weekly loss. Amidst this downturn, the prices breached another critical support level of $27,000, indicating that coin holders may experience an extended decline.
Key Points:
– A bearish breakdown from $27,000 intensifies the selling momentum in the market.
– The Bitcoin price may maintain a bullish rally until the rising support trendline is intact.
– The intraday trading volume in Bitcoin is $19.4 billion, showing an 8% loss.
As of now, the Bitcoin price demonstrates a decisive break below the monthly support of $27,000, with an intraday loss of 2.16%. This breakdown provides sellers with an additional barrier to exert pressure on market buyers and prolong the correction fall.
If the daily candle closes below $27,000 with significant volume, interested traders may consider short-selling opportunities. However, the prices may display a minor pullback to retest the breached support and confirm its suitability to this breakdown.
Should the Bitcoin price remain below $27,000, the next crucial support level is directly 6% down at $25,200-$25,000. Although the short-term outlook for bitcoin appears bearish, the overall trend stays bullish since the coin price is still above the 50% Fibonacci retracement level. Furthermore, the daily chart exhibits an ascending trendline which can offer buyers an excellent pullback opportunity to ride the next recovery cycle.
Technical Indicators:
– Exponential Moving Average (EMA): The 200-day EMA is approaching $25,000, which will fortify the support power of this level.
– Relative Strength Index (RSI): The RSI slope plunges deeper into bearish territory, reflecting the aggressive selling momentum in the market.
Bitcoin Price Intraday Levels:
– Spot rate: $28,178
– Trend: Bullish
– Volatility: Medium
– Resistance levels: $27,000 and $28,800
– Support levels: $25,000 and $24,000
The recent price breakdown below the $27,000 mark is a cause for concern for bitcoin investors, as it represents a potential continuation of the ongoing downturn. However, the long-term outlook for the cryptocurrency remains positive, with prices still above key support levels and an overall bullish trend in place.
For traders and investors, the opportunity to buy the dip could present itself if prices reach the $25,000 level or lower. With the 200-day EMA nearing that level, there may be strong support to prevent prices from falling further. However, traders should follow market trends closely and utilize technical indicators like the RSI and EMA to make informed investment decisions based on bitcoin’s price movements and market conditions.
In summary, while the recent bitcoin price breakdown suggests a 6% fall to $25,000, the overall trend remains bullish, and there may be opportunities to buy the dip. With key technical indicators showing continued support at these lower levels, a recovery cycle could be on the horizon for investors with the patience and foresight to capitalize on the current market downturn.
