Bitcoin (BTC) price has entered into a slump after a prolonged accumulation. After a boring sideways price action in the past few months, the biggest cryptocurrency experienced a flash crash last week. BTC price dipped below the key psychological level of $25,000 on some exchanges before stabilising around $26,000.
After a 0.24% drop on Monday, the pioneering digital asset extended its loss by another 0.11% on Tuesday. At press time, the token is changing hands at $26,095 just before the start of the New York session. Technical analysis reveals that the bears are in business after a change in market structure.
BTC Dominance Drops To 49%
The sideways movement of BTC to USD sucked the air out of most altcoins. This resulted in an increase in BTC dominance which is now up 17% since the start of 2023. However, due to an intense sell-off last week, the dominance of the top cryptocurrency fell to 49%. This translated into a weekly loss of 2.45%.
The following chart reveals the correction in Bitcoin dominance, which shows the BTC’s share in the total crypto market capitalization. However, despite the decreasing dominance, altcoins have failed to catch a bid. It shows that the capital has moved to stablecoins instead of other altcoins. A 9% increase in the USDT dominance last week is proof of this thesis.
Bitcoin Price Falls Below 200 MA
A look at the following Bitcoin price chart on a weekly timeframe reveals that the price has broken below the 200 MA. This key moving average is a major line in the sand for many mid-term holders and swing traders. A breakdown below this level has validated the bearish thesis putting more downside on the cards.
The 200 moving average on the weekly chart currently lies at $27,500. If the bears fail to break above this level soon, the next stop could be the 50 MA which lies at $23,800. This would mean a potential 8% downside from here. The only silver lining for the bulls is that the price has still not made a lower low on the weekly timeframe. A weekly closure below $24,770 could be the final nail in the bulls’ coffin.
Bitcoin Price Prediction Flips Bearish On Daily Chart
The daily chart analysis gives an even more bearish outlook than the weekly chart. BTC price has also dropped below 200 MA on the daily timeframe. This has flipped the Bitcoin price prediction bearish on the daily chart. It shows that the bulls have totally lost the momentum that was gained after the biggest asset manager, Blackrock, filed for a spot BTC ETF in June 2023.
My biggest fear is an acceptance back in the $25,100-17,600 trading range. BTC to USD broke out of this trading range in March 2023. In case of a bounce from current levels, the most critical will be the retest of the $27,500 level.
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Source: https://www.analyticsinsight.net/bitcoin-btc-price-fails-to-recover-is-17600-next/