- Bitcoin Price dropped below 30K and fell 5.21% in the previous session.
- The asset was trading above the 50 and 200-day EMAs showcasing an uptrend.
- It appears to be returning back to the demand zone near $26K.
Bitcoin Price dropped below $30K and formed a bearish rejection candle on the daily time frame. BTC lacks momentum on the higher levels, and a downside trend reversal is likely if the price goes below $26,000.
Bitcoin crypto price is still trading above the 50 and 200-day EMAs showcasing that the positional trend is in the upward direction. If the sell-off continues, the probability of bouncing back from the support level remains high. The trading volume in BTC crypto has been lower than in the last few months, which means that genuine buyers might not have participated in the previous rally, and the up-move might not sustain.
Bitcoin Price is trading at $28,914 with an intraday rise of 0.41%. The 24-hour volume to market cap ratio at 0.0462. Around mid-March, BTC price recovered sharply and broke out of the swing-high hurdle at $25,350. Slow and steady prices gained momentum and continued to rise upward by forming higher high swings. Meanwhile, Bitcoin price consolidated for a few weeks and formed a short-term base near $28,000. It will act as an immediate support level for bullish traders.
Will Bitcoin Price Consolidate or Reverse Down?
BTC/USDT daily chart by TradingView
Bitcoin Price performed well in the past few months and has generated decent returns for long-term investors. BTC’s price seems to be in recovery mode till it sustains above $26,000. If the BTC price defends the $26,000 support, then the price could consolidate further.
On the other hand, if the price drops below $26K, the bears might drag it down to $24,000. The technical analysis suggests Bitcoin price is still in an uptrend, and any short-term correction will have the possibility of bouncing back from the support zone.
BTC price holds the previous week’s low
BTC price formed a bearish rejection candle weekly after rising upward over the past five weeks. The weekly low at $28,170 remains and acts as short-term support. If BTC breaks down its weekly lows, it would only trigger more sell-off.
The MACD had generated a negative crossover, indicating that a bearish momentum may continue for some more time. The RSI at 52 reversed down from the overbought territory and may hover near the neutral zone.
Conclusion
Bitcoin Price fell 5.21% and dropped below $30,000. It showed the initial signs of a bearish trend reversal, but confirmation is awaited. BTC is witnessing profit booking while the sellers try to drag it down to test the EMAs. Technical analysis suggests that the BTC price is still on an uptrend, and any short-term correction may take a halt near the support of $26,000.
Technical levels
Resistance levels: $31,051 and $32,484
Support levels: $26,526 and $23,884
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/04/20/bitcoin-price-below-30k-is-the-price-correction-about-to-start/