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Bitcoin battles downtrend; Can it retest key channel and retake $28,000?

source-logo  finbold.com 02 June 2023 12:46, UTC

As Bitcoin (BTC) continues to follow a largely sideways trading pattern, specific indicators need to line up for the decentralized finance (DeFi) asset to repeat the earlier run toward $28,000 and continue up, including a successful retest of a critical channel and invalidation of a bearish pattern.

In fact, Bitcoin is still attempting to retest a channel that kickstarted the most recent move to $28,000, as it needs to retest the top of the chart pattern and remain inside a crucial area, as observed by pseudonymous cryptocurrency analyst Rekt Capital in a tweet on June 1.

Specifically, the crypto expert was referring to the down-trending channel and its upper edge for a retest, as well as the ‘red box’ area between $26,920 and $27,500, in which the asset needs to stay “to have a chance at invalidating the bearish head and shoulders.”

As it happens, this is another attempt by Bitcoin after failing at a red box top retest earlier on May 31, which Rekt Capital also noted on the same day, and the spotlight at the moment is again on retesting the upper border of this pattern.

Bitcoin price analysis

Meanwhile, Bitcoin was at press time changing hands at the price of $27,141, recording a 0.95% gain on the day and 2.57% across the week, as it still holds on to the losses of 5.31% on its monthly chart, according to the data retrieved by Finbold on June 2.

Earlier, Altcoin Sherpa noted that Bitcoin could still decline further, even dropping to as low as $23,000, as he cited data from several technical analysis (TA) indicators, including the 200-week exponential moving average (EMA), support and resistance levels, 200-day EMA, and the 0.382 ratio Fibonacci level.

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