Bitcoin has experienced a sharp downturn from its recent high of $31,000 and is now trading at barely above $28,000. The reason for the drop has been attributed to one trader (or investor) who sold off $400M worth of Bitcoin in one go.
Other than that Bitcoin remains strong. Let’s see what next week holds for this asset
Bitcoin Price: Last Week’s Analysis
Last week, Bitcoin broke through the 28k resistance level and continued to rise toward $31,840. There was speculation about whether BTC would retrace or continue to rise toward the $34,000 mark. However, this week the asset has received some heavy selling pressure from bears.
Currently, Bitcoin sits at $28,016. This is an important zone because it was previously the resistance. If everything goes well, $28,000 might become the new support. If this is the case Bitcoin could bounce off of this support and launch to higher highs.
Bitcoin Price: Next Week Analysis
The 200-EMA (green line) is very important in analyzing Daily and weekly timeframes. Bitcoin dropped to a low of $28,005 on April 20, 2023, and continues to sink deeper. The next reliable support for Bitcoin, if $28k fails, will be $24,000. This, unfortunately, will present an 11% drop from the current price.
The 200-day EMA also acts as a support or resistance depending on where the price is. In this case, it can act as support for BTC around the $24,000 area. Therefore, the narrative for a $24K BTC in the coming weeks is in play. What is needed is a piece of negative fundamental news to launch BTC off the cliff.
On the off chance (nothing is really left to chance – it’s all manipulation ????) that $28K support holds, the path to $52,000 has been charted (red path). There is a somewhat strong barrier around $35,000 – $36,000 which could present some resistance. However, the behavior of BTC when it reaches that price all depends on the state of the global financial arena and the power of the bulls.
It is also worth noting that Bitcoin is currently sitting at the 50-day moving average, relatively strong support as well.
DISCLAIMER: The work included in this article is based on current events, technical charts, company news releases, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decisions based solely on what you read here.