Bitcoin Price Trapped in Consolidation Poised for 5% Drop

BTC Price Prediction: After an aggressive rally in March’s first half, the Bitcoin price turned sideways in light of increasing uncertainty in the crypto market. Thus, the prices walking a lateral path over the past three weeks between $28800 and $26500 levels created a narrow range. Here’s how you may find a long-entry opportunity in BTC amid the sluggish market sentiment.

Key Points

• The area between $28800 and $26500 can be considered a no-trading zone
• A potential breakout from the $28800 will be a key signal for uptrend continuation.
• The intraday trading volume in Bitcoin is $36.2 Billion, indicating a 26.2% loss

Source-Tradingview

After a significant price rise, an asset price usually takes a short break to replenish the bullish momentum and check the price sustainability above the reclaimed prices. Thus, the ongoing consolidation in Bitcoin is meant to recuperate the buying pressure and prolong price recovery.

Over the past three weeks, the BTC price rebounded from the $28800 and $26500 levels several times indicating the traders are actively responding to this range levels. Though the market FUD has prolonged the consolidation phase, the coin price managed to sustain above $26500 support indicating the buyers are defending the newly reclaimed levels.

Also Read: What Are Bitcoin Ordinals And How Do They Work?

However, the BTC price currently trades at the $27890 mark and has recently reverted from the $28800 range resistance. This bearish reversal creates a new bear cycle with the range structure and increases the possibility of a 5% downfall which may revisit $26500. 

Anyhow, the traders waiting for a long opportunity should wait for a $28800 breakout.

Technical Indicator

RSI: The daily RSI slope moving lower despite a sideways indication the bullish momentum has been exhausted and the current consolidation could benefit to revive the buying pressure.

EMAs: the rising 20-day EMA slope may offer an extra edge to buyers’ resumes prior to recovery.

Bitcoin Price Intraday Levels

• Spot rate: $27935
• Trend: Bullish
• Volatility: High
• Resistance levels- $28000 and $32000
• Support levels- $25000 and $23870