Bitcoin (BTC) fell around 12% on Thursday, causing the big crypto to trade under the $26,000 psychological level. The price of the most favorite crypto began the day on August 17 at $28,700 before tumbling to a low of $25,234 on Coinbase.
Analysts say that the latest crash was triggered by a number of factors including Elon Musk’s SpaceX reportedly offloading its Bitcoin, a Chinese property giant going, and fears of more interest rate hikes.
While there appears to be no consensus as to why the markets suddenly dropped, the dip provides an opportunity for investors to buy Bitcoin at a discount.
Could BTC Provide a Buying Opportunity at $24,400?
Data from Trading and CoinMarketCap shows that BTC is currently in hands of the bears as it hovers around $26,427. The pioneer cryptocurrency is down 7% on the day and 10% over the last seven days. More than $1 billion has been wiped off its market capitalization to $514 billion. The daily trading volume is up 110% to $34.5 billion, attesting to the increasing transaction activity as fear, doubt and uncertainty grips the market.
The crypto fear and greed index has dropped from yesterday’s neutral value at 37 to the “Fear zone” at 37. According to Alternative, the firm that analyzes “emotions and sentiments” around Bitcoin, fear can be a sign that investors are too worried about their investments and hence sell to minimize their losses.
Bitcoin Fear and Greed Index
The BTC/USD daily chart below shows that the Relative Strength Index (RSI) is moving within the negative region. The price strength at 20 suggested that the bears were in full control of the Bitcoin price.
As such, the price could drop further from the current position with 78.6% Fibonacci retracement level providing support at $25,975. Other levels to watch on the downside are the $25,500 support zone, yesterday’s swing low at $25,234 and the $25,000 psychological level.
Losing these levels would see Bitcoin drop to revisit the $24,410 level, embraced by the 123.6% retracement level. This would represent a 7% drop from the current price.
BTC/USD Daily Chart
On the positive side, the RSI showed that Bitcoin is oversold, meaning that a recovery could be on the cards as seller exhaustion kicks in. If this happens, BTC may rise from the current level with the first line of resistance emerging from the 61.8% Fibonacci retracement level at $25,558.
Additional barriers are found at the $27,000 psychological level, the $23.6% retracement level and the 50-day SMA at $28,397. Bitcoin has to complete the full retracement to $28,700 and climb higher to confirm a sustained recovery.
The post Bitcoin Price Prediction: BTC Crashes 7% To $26,000, Buy the Dip Now appeared first on Analytics Insight.
Source: https://www.analyticsinsight.net/bitcoin-price-prediction-btc-crashes-7-to-26000-buy-the-dip-now/