26 May 2023 02:35, UTC
Reading time: ~2 m
Even after spending two weeks in deep consolidation, the Bitcoin price shows no intentions of reclaiming the higher grounds. Thus, the sideways trend continues and restricts the BTC price spread between $27500 and $26000 levels. The aforementioned range can be considered as a no-trading zone and therefore, interested traders must wait for a clear breakout before positioning their funds in the market.
Bitcoin Price Daily Chart
- A potential breakout from the range barrier will determine the near future trend for BTC
- An ascending trendline drives the long-term rally for crypto holders.
- The intraday trading volume in Bitcoin is $14.1 Billion, indicating an 8% loss.
In the daily time frame chart, the Bitcoin price shows a long lower price rejection candle at the range support of $26000. This reversal sign indicates the buyers continue to defend bottom support and may continue to a consolidation phase for a longer period.
Anyhow, the short-term trend in Bitcoin price is still bearish, and therefore, a downside potential looks more promising to predict. A daily candle closing below $26000 will accelerate the selling pressure to drive a longer correction.
However, a potential downfall would face immediate support at $25000 aligned with the 200-day EMA. In a pessimistic scenario, a breakdown below $25000, will plunge the BTC price to the combined support of $24000 and a rising support trendline.
Will Bitcoin Price Dive to $24000?
A Bearish breakdown below the range support of $26000 will signal the resumption of the prevailing correction phase. Ending the two weeks’ consolidation on the bears’ side will trigger a significant downfall to $24000. The key support level that could undermine this potential downfall is $25000.
- Bollinger Band: The midline of the BB indicator acts as a dynamic resistance against rising BTC prices.
- Vortex indicator: The VI- slope(orange) moving above the VI+ slope reflects the bearish trend remains intact.
Read the full article here