Analysis

Bitcoin Price Prediction: BTC to Hit $29K

Adekunle Joshua

Key Insights:

  • The price action of bitcoin implies that traders may already be taking profits, due to the fear of further declines to $25,000 or lower.
  • Crypto analyst, Michael van de Poppe has mentioned that If Bitcoin breaks the $27,800-28,000 resistance, the $29,200 zone will become the next stop
  • Traders are now constantly monitoring the important levels as Bitcoin trades in a narrow range.

After BTC's abrupt decline began last week, the prices in the whole cryptocurrency market have followed suit, and have registered massive losses.

Many altcoins have fallen due to the Bitcoin decline so far, and only a few cryptocurrencies on the market have managed to stay green.

The price action of Bitcoin over the past week implies that some traders may already be taking profits, due to the fear of further declines in Bitcoin to $25,000 or lower. Experts anticipate Bitcoin will reach a price range of $26,600 to $25,000, at which point, the buyer sentiment on the cryptocurrency may change.

According to recent insights provided by a prominent crypto analyst, BTC might still have a good chance at rallying. In fact, Bitcoin can see an upside if a set of conditions are met over the next few days. Here are those conditions:

Bitcoin Ready To Retest $29K?

According to CoinMarketCap, Bitcoin has fallen by up to 9% over the last week and isn't doing so well over the last day at the time of writing.

Snapshot showing Bitcoin's performance

According to CoinMarketCap and TradingView, Bitcoin has fallen below the $31,000 zone and is now struggling around $27,350 at the time of writing.

However, according to crypto analyst and educator, Michaël van de Poppe, Bitcoin may have another shot at a bullish rally in the next few days.

In a tweet published on Monday this week, the analyst mentioned that if Bitcoin breaks the $27,800-28,000 resistance entirely in the coming few days, a rally towards the $29,200 zone will become possible.

Chart showing Michaël van de Poppe's views on Bitcoin

In another tweet, the analyst mentioned that "we'll be having a rebound play shortly" as a result of the negative funding that Bitcoin has been experiencing.

When financing turns negative, it signifies that traders shorting Bitcoin are compensating those who are long it, which often signals a change in the mood of the market.

Reason for the BTC bounce

Van de Poppe believes that 'bullish divergences' will form in the $26,500 to 27,000 range as a result of Bitcoin's rejection at its present levels.

He goes further to opine that Monday, April 24, may be a "dump day" for Bitcoin, but he also thinks that, if the bullish divergences occur, there may be a rebound to $29,200 afterwards.

The analyst pointed out that Bitcoin has corrected after the CME gap was filled, sending the cryptocurrency once again back towards resistance around $27,800. As a result, traders are now constantly monitoring the important levels as Bitcoin trades in a narrow range.

Bitcoin Price Analysis

At the 50-day simple moving average (purple line around $26,983), buyers are attempting to stop Bitcoin from going lower. However, the cryptocurrency's price action indicates that the bears are not ready to give up.

Chart showing Bitcoin's price action

The RSI on the daily chart has also gravitated towards the negative territory and the 20-day exponential moving average ( around $28,606) has begun to turn down, indicating that the bears may be stronger in this scenario and may have a slight advantage.

If the 50-day SMA breaks, the resulting selling pressure would cause Bitcoin to sink straight down to $25,000.

Chart showing Bitcoin's possible price action

At this point, Bitcoin would be hanging on a thread, because a break through $25,000 would cause a massive dip straight down to $20,000

To push Bitcoin into a rebound, the bulls will need to drive and maintain the price above the 20-day EMA around $27,800 (as Van de Poppe said).

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.