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Bitcoin Price Analysis: Is $BTC Price Poised for Further Correction?

source-logo  coingape.com 29 May 2023 19:30, UTC

Bitcoin Price Analysis: The crypto witnessed a significant buying press in the last few days which is likely associated with the macro economical event of the US debt ceiling deal. As a result, the Bitcoin price bounced back from the local support of $26000 and surged 9% to the hit overhead trendline of the channel pattern. However, the supply pressure at this resistance keeps the BTC prices under the threat of prolonged correction.

Also Read: Debt Ceiling Deal Blocks 30% Proposed Tax On Crypto Mining, Confirms Congressman

Bitcoin Price Daily Chart

  • The current short-term trend in Bitcoin price is bearish, where it resonates between two converging trendlines of the channel pattern
  • A red candle with long-wick rejection at the overhead trendline reflects a potential downfall in the BTC price
  • The intraday trading volume in Bitcoin is $5.68 Billion, indicating a 12.5% loss.

Source-Tradingview

Today, the Bitcoin price trades at $27762 with an intraday loss of 1.2%. This red candle is formed at the resistance trendline of the channel pattern indicating the sellers are still defending this resistance.

Usually, a reversal from the above trendline replenishes the selling momentum and sets the asset price to fall back to the lower trendline. For this potential downfall, a flip below the recently reclaimed $27500-$27200 will give an additional confirmation for the resumption of prevailing correction.

The post-breakdown may fall nearly 9% to hit the lower trendline of $25000.

Will Bitcoin Price Revist $25000?

In response to a reversal from the channel pattern’s resistance trendline, the Bitcoin price is poised for a downfall to the lower trendline which is currently situated at $25000. However, the potential fall may witness demand pressure at $27500 and $26000.

  • Exponential Moving Average: The 20-and-50-day EMA accumulated near the $27500 created a strong support zone, and that could undermine potential correction with the channel pattern.
  • Vortex Indicator: A bullish crossover between the VI+(blue) and VI-(orange) reflects the current market trend sentiment is positive.
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