Bitcoin Price Analysis: Is Another Downfall Imminent?
Bitcoin is facing the possibility of another drop in price after experiencing some volatility during its climb to $26,800. This week, Bitcoin briefly turned green after being oversold the previous week. The positive impact on major altcoins like Ethereum was also observed, with Ethereum climbing to $1,700 before dropping back to $1,650.
Key Points:
- BTC price is currently at a crossroads, with short traders predicting a dip to $23,500 or even $20,000.
- The technical outlook on the daily chart suggests a bearish trend, with the Moving Average Convergence Divergence (MACD) indicator signaling a sell.
- The Money Flow Index (MFI) indicates that sellers have the upper hand, as the outflow volume exceeds the inflow volume.
- A rebound in price can be expected at the $25,000 support level, which is reinforced by a multi-month ascending trendline.
- Bitcoin’s dominance has fallen to 49.25%, hindering the resumption of the uptrend.
Bitcoin Price Rebound Awaits This Condition
An analyst, CryptoFaibik, believes that the $25,000 support level needs to hold for the bulls to regain control. Additionally, a rebound in Bitcoin’s dominance would indicate a potential bounce back for its price.
Bitcoin Supply On Exchanges Dips to Pre-2017 Levels
Despite the crypto winter, Bitcoin’s supply on exchanges continues to decline. This suggests that investors prefer to hold their cryptocurrencies away from exchanges, reducing potential selling pressure and increasing the possibility of a breakout.
Hot Take:
Bitcoin’s price is currently at a critical point, with the potential for both a further drop and a rebound. Technical indicators and market sentiment suggest a bearish trend, but the support at $25,000 and the decreasing supply on exchanges offer hope for a potential rebound. The upcoming halving event could also contribute to a bullish market. Crypto readers should closely monitor these factors to make informed decisions about their Bitcoin investments.
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