Bitcoin's Rollercoaster Ride: From Selling Zone to Key Support Level

Bitcoin's Rollercoaster Ride: From Selling Zone to Key Support Level

The well-known cryptocurrency Bitcoin has broken below its bearish channel and fallen from its support level today. This has led to a sense of unease in the cryptocurrency market, and bears are quickly attempting to assert their dominance.

Over the last three days, selling pressure has been driving the bearish trajectory of BTC. During this time, the value of Bitcoin has seen a decrease of approximately 6.5% from the psychological threshold of $30,000. As previously indicated, a breach below the $29,000 level was predicted to potentially trigger intensified selling activity.

Source: Tradingview 


During Thursday evening, the price of Bitcoin descended beneath the $28,000 mark, reaching a 25-day low of $27,872. This development is less than ideal for investors. As of the current moment, the Bitcoin price is actively trading at $28,180, reflecting an intraday loss of 2.6%.

Additionally, there has been a notable uptick in trading volume today, indicative of an uptick in selling activity. According to data from CoinMarketCap, trading volume has surged by 51% in the span of one night, amounting to $21.3 billion. If the price of BTC remains below the $28,000 threshold, this could potentially pave the way for further selling pressure.

Source: Tradingview 


Nevertheless, the value of Bitcoin has descended beneath the 100-day simple moving average, and the 200-SMA is now emerging as the subsequent crucial support area for the bullish stance. Should this level be breached, buyers would once again find themselves susceptible to a pronounced sell-off.

The RSI indicator has also ventured into the oversold territory as the downward momentum persists. Conversely, a potential scenario is that buyers might take initiative if the RSI's peak begins to rebound following the selling phase.

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Disclaimer:
This information is for educational purposes only and does not constitute investment advice. No person should rely on it to make any investment. Investing carries risks, including the loss of capital. All opinions expressed are subject to change without notice. Past performance is not indicative of future results. Always seek the advice of a licensed investment professional before making any investment.