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
In a recent tweet from renowned crypto analyst, Michaël van de Poppe, "Bitcoin is currently showing weakness"
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.
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.
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 $31,000.
Mikybull went further to say that the price of the cryptocurrency is currently sitting on "TL support".
And if it loses 28000$ there is a higher chance that Bitcoin declines into a retest of the $25,500 – $26,000 zone before continuing upward.
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.
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