3 - 6 minute read
Bitcoin (BTC) prices recently hit new intraday lows, with traders warning that the digital asset may slip as low as $25,000. The pair looks weak, and overnight events have failed to resurrect any sign of its previous uptrend. The focus is now on the key trend line, and if BTC loses it, then a test of $25-26K could be likely, but this is not a cause for concern.
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD struggled to preserve $28,000 as support on Bitstamp. Traders warned that if it loses the support at $28,000, higher chances that BTC may test $25,500, which constitutes its 200-week moving average. This support level was originally lost in 2022 and only reclaimed in recent weeks. Additionally, a potential return to the area around a key trend line has become the focus of prognoses for Bitcoin.
“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”, Credible Crypto summarized alongside a YouTube video. The video further described a return to $25,000 as “absolutely fine” and still an example of “a little bit of a deeper pullback” rather than a significant trend change.
“Price is currently sitting on TL support. If it loses 28,000$, higher chances that we test 25,500 – 26,000$ and continue upward,” part of additional analysis stated on the day.
The current market for Bitcoin seems to be in a state of weakness, with the digital asset struggling to maintain support at $28,000. If BTC loses this support level, the next level to watch for is $25,500-26,000, which is the coin’s 200-week moving average. Nonetheless, this is no cause for concern, as a deeper pullback is expected, rather than a significant trend change.
For traders, the current market for Bitcoin is an opportunity to take a long position for a scalp when the bulls start stepping in. However, if the bears take over, there is an opportunity to short loss of the range down to the range low at $26,600.
#Bitcoin is currently showing weakness.— Michaël van de Poppe (@CryptoMichNL) April 21, 2023
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
The Bottom Line
The prognosis for Bitcoin trading in the short term doesn’t look great, with traders suggesting the price could fall as low as $25,000. However, this isn’t cause for concern, and traders can take advantage of the current market volatility to short or long the coin. Nonetheless, investors need to be cautious, as every investment and trading move involve risk, and readers should conduct their research before making any decisions.