Bitcoin's Steady $26K Stance: Will It Plunge to $25K Next?

Bitcoin's Steady $26K Stance: Will It Plunge to $25K Next?

The prominent cryptocurrency, Bitcoin, has maintained a bearish trajectory over the last eight days. It's worth noting that while this doesn't constitute a significant crisis in the broader scheme, the ongoing price momentum indicates a potential decline of over $1000 points. This downward trend is anticipated to continue until reaching a critical level at $25,000.

Although Bitcoin's trading range has remained steady around the $26,000 mark, buyers appear to be displaying a lack of confidence. This hesitation stems from the potential for substantial buying opportunities during accumulation around the $25,000 area.

Source: Tradingview 

In the daily price chart, Bitcoin has found a supportive stance around the 250-day simple moving average. This particular level has already proven to be a solid foundation for the bullish side. However, a potential breach of this support might trigger more pronounced selling activity, aligning with prevailing expectations. 

Ethereum's Rapid Reaction to Bitcoin's Influence

The second most prominent cryptocurrency, Ethereum, has been significantly impacted by the recent market sell-off. This has led to a notable decline of almost 12% in its price over the course of a week. Similar to the situation with Bitcoin, Ethereum's price is currently positioned at a critical support level of $1,620.


Source: Tradingview 


Beneath the established support level at $1,620, buyers might adopt a more assertive stance around the $1,500 mark. In a more adverse scenario, the subsequent support would come into play around the $1,400 zone.

In contrast, Ethereum is exhibiting a more bearish outlook, having dipped below the 250-day simple moving average on the daily price chart. This is in contrast to Bitcoin, which is still holding above the 250-SMA. Consequently, sellers might find it easier to guide the bearish trajectory for Ethereum, especially as the RSI indicator descends into the negative territory.

Conclusion:

Amidst the prevailing bearish trend, both Bitcoin and Ethereum cryptocurrencies find themselves within a significant zone of importance. This juncture presents a potential opportunity for accumulation; however, buyers are anticipating a further decline of approximately $1000 before Bitcoin reaches the $25,000 mark in preparation for the upcoming bullish phase.

also read: Bullish on Bitcoin: Google Bard's Crystal Ball for the Next Crypto Boom

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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.