Rising Supply Pressure Threatens Bitcoin Price for 6% Drop this Week; Time to Reaccumulate?

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Bitcoin-the largest cryptocurrency started the May month on a bearish note, registering an intraday loss of 2.36% at 6:50 am ET. This decline formed a new lower high in the daily time frame chart reflecting an early sign of trend reversal and continuation of ongoing correction. With sustained selling the BTC price is poised for 6% before hitting a significant support.

Key Points:

A new resistance trendline governs the ongoing correction in Bitcoin price
The $27000 mark stands as an important support of coin holders
The intraday trading volume in Bitcoin is $18.4 Billion, indicating a 74% gain.

Source-Tradingview

Last week’s recovery in Bitcoin price fails to surpass the last swing high of $30700 and takes a U-turn from the psychological resistance of $30000. Joining the peaks of these highs, a new resistance trendline can be drawn to mark the direction of the ongoing correction phase.

With a significant price drop today, the BTC price plunged below the local support of $28875. This breakdown may accelerate the selling pressure and plunge the prices 6% down to reach the combined support of $27000 and 23.6% Fibonacci retracement level.

Also Read: Bitcoin Declines Amid JPMorgan, PNC’s First Republic Bank Buyout Bid

A potential breakdown below it will give additional confirmation for a prolonged downfall and tumble the prices by another 7% to reach the $25000 psychological support.

Anyhow, the Bitcoin price may continue the ongoing correction phase until the overhead resistance trendline is intact.

Technical Indicator

Relative Strength Index: the daily RSI slope back to the midline indicates a neutral sentiment among market participants.

Exponential Moving Average: With the recent drop, the Bitcoin price failed to sustain above the 20-day EMA slope, and dived below it. This breakout gives an additional edge to short-sellers.

Bitcoin Price Intraday Levels

Spot rate: $28602
Trend: Bearish
Volatility: Medium
Resistance levels- $28875 and $30750
Support levels- $27000 and $25000

From the past 5 years I am working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. Reach out to me at brian (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

Source: https://coingape.com/markets/rising-supply-pressure-threatens-bitcoin-price-for-6-drop/