Bitcoin (BTC) price could face a sharp drop as the price is declining on the charts. Over time, investors become pessimistic. The price action depicted on the charts seems to create a favorable condition for sellers to enter the market.
Analysts are cautious about the pattern forming on the charts as the price appears to be making a peak followed by a consolidation near the trendline support. The trend line support could be the last bullish zone for the buyers.
If BTC price manages to break the zone and starts trading, sellers might try to take control and could break below the neckline of the double top pattern and pull the break below $20,000.
BTC is the oldest cryptocurrency and the market leader with a 49.1% dominance in the crypto world. With a market cap of over $1 trillion in 2021, it hit a record high of $64,863.10 on April 14, 2023.
This is partly due to growing demand from institutional investors and the widespread availability of platforms offering BTC-related services such as wallets, exchanges, payments, gaming, and more.
Bitcoin price is consolidating and is almost the last hope for buyers
Bitcoin price is currently trading at $29154.20 and it is consolidating near the previous trendline support.
The short-term outlook for Bitcoin (BTC) price remains neutral until the price manages to stay above the trendline support. The trendline support could be the last hope for buyers, whose collapse could trigger a strong downside move for the coin, according to analysts.
RSI and MACD indicators are showing bearish divergence on the double top formation
MACD and RSI indicators are showing bearish divergence, indicating a loss in buying momentum, and the price could go down as selling volume enters the market.
EMA analysis shows that BTC price has failed to sustain above the 50 EMA, indicating short-term seller dominance in the market and turning into a long-term downtrend if the price breaks below the 200 -EMA falls.
Diploma
Bitcoin price prediction concludes that the price is showing signs of weakness and could fall sharply. Investors are losing confidence as the price is consolidating near the trend line support. The price could form a double top pattern and drop below $20,000 if the support breaks. Bitcoin price is currently at $29154.20 and it is near the critical support zone. The short-term outlook is neutral as long as the price stays above the support. The support could be the last chance for the buyers.
Technical Levels
- Support Levels: $24346 and $20379
- Resistance Levels: $31361 and $34945
Disclaimer
The views and opinions expressed by the author or persons named in this article are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading in cryptocurrencies or stocks involves risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes cryptocurrencies inspire people to be their own bank and break away from traditional money exchange systems. She is also fascinated with blockchain technology and how it works.
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