2023-05-12 23:23:11
© Reuters With New Correction, Bitcoin Could Dip to $25,000
CriptoFácil – Selling pressure in the cryptocurrency market continues to build, setting another day of losses. As a result, the price of (BTC) has dropped again and is now below the $27k region.
With yet another loss of support, BTC starts to show increasing weakness. In this sense, the chart shows a possibility of a drop of up to 6%, taking the cryptocurrency to the region of $ 25 thousand. See how this can happen.
Negative week for Bitcoin
Bitcoin price has been falling for seven straight days, posting a weekly loss of 11.3% according to CoinGecko. Amidst this drop, prices have broken another significant support at $27K, indicating that investors are likely to see a longer decline.
This Friday (12), BTC dropped more than 4% earlier in the day, but reduced this fall to around 2.2%. Still, the cryptocurrency dipped below the $27,000 support, hitting a six-week low.
This breakout offers sellers an additional barrier to pressure market buyers and prolong the downward correction. After all, this is the fifth consecutive day of losses, a sequence that consolidates the buying force.
What can the market expect?
For now, the hope of buyers is in the daily closing, which always occurs at 21:00 (Brasília time). It is precisely the price level during the close that determines the medium-term behavior of BTC.
If the daily chart’s candle closes below $27K on significant volume, interested traders may look for a short selling opportunity. However, prices may pull back slightly to retest the breached support and validate their suitability for such a breakdown.
If Bitcoin price breaks below $27K, the next significant support will drop directly by 6% to $25,200. On the other hand, a close above this level – again, followed by volume confirmation – will see BTC surge back up to $28,800.
While the short-term view for Bitcoin looks pessimistic, the overall trend remains bullish as the coin price is still above the 50% Fibonacci retracement level. Furthermore, the daily chart shows an ascending trend line which may offer buyers an excellent pullback opportunity to take advantage of the next recovery cycle.
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