Key Insights
- The price of Bitcoin has corrected for the first time in months, sparking talk of a “bear market continuation”.
- Bitcoin’s price is now in a tight spot, following the latest dip that took it straight down from $31,000 to below $28,000.
- Renowned crypto analyst, Michaël van de Poppe, “Bitcoin is currently showing weakness” and a decline to $25,000 may be coming due to the CME Futures gap
- In all, this may only be a healthy correction and nothing more.
After a little more than a month, the price of Bitcoin has corrected for the first time, sparking talk of a “bear market continuation”.
This goes further to show how fragile the cryptocurrency market is, that even the smallest declines cause fear amongst investors even when they are only minor corrections.
Bitcoin’s price is now in a tight spot, following the latest dip that took it straight down from $31,000 to below $28,000.
There are now bits of speculation that BTC may go even lower, and may be headed for levels as low as the $25,000 zone.
Here are some factors to consider
Analyst Says Bitcoin Is “Showing Weakness”
In a recent tweet from renowned crypto analyst, Michaël van de Poppe, “Bitcoin is currently showing weakness”
#Bitcoin is currently showing weakness.
Broke back in the range, lost one of the crucial levels.
Final crucial level is at $27,600. Could take liquidity beneath, but needs a fast recovery.
If not, and no break of $28,800, then I suspect we'll see $26,200. pic.twitter.com/TuCaFq8eIk
— Michaël van de Poppe (@CryptoMichNL) April 21, 2023
Van de Poppe mentioned that BTC has broken back into “the range”, and has lost one of its crucial levels.
The analyst mentioned that the final crucial level is at $27,600 and if this level is ever broken, there must be a fast recovery, otherwise, BTC might “see $26,500”
Van de Poppe also mentioned that if BTC is unable to break through $28,800, this decline might be inevitable.
CrediBull Crypto, another crypto analysis and education platform mentioned in a tweet/YouTube video, that BTC is testing key local demand at 28k and isn’t getting the best reaction.
Bitcoin testing our key local demand at 28k and not getting the best reaction. If this level is lost, 25-26k is likely tested but this is no cause for concern.
Discussed this in the 60 second clip below, full vid in pinned tweet for more context. $BTChttps://t.co/jYb6tCGI89
— CrediBULL Crypto (@CredibleCrypto) April 20, 2023
The tweet mentioned that if this level is lost, 25-26k will likely be the next stop. Finishing up with the video, CrediBull says that a decline to $25,000 is still healthy and that this might just be an example of a slight pullback, rather than a full trend reversal.
Opportunity For $BTC Long Trades
Another more optimistic trader, Crypto Tony, shared a few ideas about what he feels might be a good scalping opportunity.
In a tweet early on Friday, the analyst mentioned that Bitcoin is approaching a “high volume node”.
The analyst said to his followers, that he is looking to play a long scalp around this zone, once he sees the Bulls stepping in.
In the meantime, a gap in the Bitcoin futures of the CME Group has reportedly been “totally” closed, according to a tweet from analyst Mikybull.
With Mickybull forecasting a return to “fill” it, this was made earlier in April amid Bitcoin’s climb to local highs above $31,000.
Will get filled sooner or later
— Mikybull 🐂Crypto 🔬 (@MikybullCrypto) April 21, 2023
Mikybull went further to say that the price of the cryptocurrency is currently sitting on “TL support”.
#Bitcoin 29500$ – 30000$ is a level I'll like to take a short, if it is rejected.
Price is currently sitting on TL support. If it loses 28000$, higher chances that we test 25500 – 26000$ and continue upward.
Note: Bitcoin daily TF is still trading above 50EMA 🚀 pic.twitter.com/oC6PPhPRUG
— Mikybull 🐂Crypto 🔬 (@MikybullCrypto) April 21, 2023
And if it loses 28000$ there is a higher chance that Bitcoin declines into a retest of the $25,500 – $26,000 zone before continuing upward.
Bitcoin’s Price Analysis
The price of bitcoin fell for a second day in a row on Thursday, reaching a 10-day low of $28,300 as traders sought to steer clear of riskier investments.
According to TradingView data, Bitcoin showed weakness on Wednesday by closing below the 20-day moving average (agreeing with Michaël van de Poppe).
For context, mid-March was the last time the cryptocurrency went below this moving average.
Overall, the market overheating from the extreme bullishness over the previous month may be the reason why Bitcoin’s price is correcting itself.
The Relative Strength Index (RSI), which at the time of writing had crossed the neutral line at 45.0, is proof of the same.
Further proof comes from the fact that volatility is now at a two-month low, which shows that no significant price movements are technically possible as of now.
In all, the FUD in the market is only because Bitcoin lost its footing at around $30,000.
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.
