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Bitcoin (BTC), the leading cryptocurrency, is weak at spot rates, dropping about 10% in the past trading week.
Experts suggest that bitcoin’s weakness could continue as some altcoins outperform the legacy coin.
BTC price to dip lower?
Currently, the cryptocurrency market is on edge as bitcoin struggles and upward momentum fizzles.
Bitcoin’s recent decline from a high of $31,000, registered in April 2023; to its current level of just above $26,000 is raising concern, especially among holders.
The unexpected downturn has prompted experts to speculate on what could be driving prices lower.
Michael van de Pope, a market analyst, is already sounding the alarm.
In his view, he says BTC is weak at spot rates though altcoins appear firmer after sharp losses last year.
#Bitcoin is showing weakness and #altcoins are slightly bouncing in their BTC pairs as they have been retracing significantly.
— Michaël van de Poppe (@CryptoMichNL) May 12, 2023
Overall, I'm looking at a case that we need to reclaim $26,500-26,800 before hitting longs (mentioned yesterday).
Otherwise, $25K. pic.twitter.com/dgwxdH3NHE
This resurgence may suggest that traders are exploring alternatives besides BTC.
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Poppe also emphasizes that bitcoin needs to reclaim the $26,500 to $26,800 resistance zone for the uptrend to resume.
Failure could result in a further draw-down to $25,000.
Currently, BTC is trading at $26,379, down 3.80% in the past 24 hours, according to trackers.
As sellers press on BTC has fallen 9.2% in the past trading week.
The collapse of bitcoin prices align with the Poppe’s earlier observation and expectation of a cool-off from April’s high.
End of bitcoin bull run?
If bitcoin continues to fall, the next critical support level to watch is around $22,000.
This support level could act as a buying zone.
The bitcoin market capitalization currently stands at $511.7b but is contracting.
Technical indicators on the daily chart also points to caution.
For example, the simple moving average (MA), a technical indicator, is currently positive sloping and swinging lower.
This means that many traders and investors are feeling the pressure to sell, fueling bears.
Meanwhile, oscillators appear overbought and dropping from this bullish territory. As their readings fall, BTC prices may follow suit, crashing to immediate support lines.
Read more: Bitcoin drops below the $30k mark what to expect