After witnessing some recovery in the past week, Bitcoin topped out at resistance and initiated a heavy drop below the previous low. It lost 6% in the dip and has shown no sign of stopping at the moment. More bloodbath lies ahead.
Following a bounce from the 4-hour channel’s lower boundary in mid-May, Bitcoin’s price recovered and slipped back to $26,000. It picked up again last week and rallied to the upper boundary of the channel, where it saw a rejection at $28,500.
The price dropped but the bulls intercepted and pushed the price back to $27,500. The price was countered with a rejection today and it lost grounds to where it’s priced at around $25,600.
In the middle of the bearish heat, a lot of price manipulation took place to frustrate mostly the amateur traders out of the market. Several stop losses are triggered on buy positions with millions of dollars liquidated on futures in the past hours. Spot traders are also counting their losses at the moment
However, the sellers are fully in control right now following two successful interceptions in the past week. A broader drop could bring the price to as low as $24k in the next couple of weeks.
The last 24-hour trading has been ugly as Bitcoin tumbles to its lowest price in two months. Although it has also posted some gains last week.
There’s still a lot of FUD in the market right now. The price needs to break above the channel pattern to signal an end to the two-month correctional phase.
Bitcoin’s Key Levels To Watch
Bitcoin’s closest support right now is $22,255. A continuous dip could roll the price to the low of $24,700 before dipping to $24,000, where a major rally is expected to take place.
The nearest resistance for recovery now is the broken $26,000 level. It may even reach $26,600 if the buyers push well in the coming hours. The key level for recovery lies at $27000
Key Resistance Levels: $26,000, $26,600, $27,000
Key Support Levels: $25,255, $24,700, $24,000
- Spot Price: $25,675
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.