Bitcoin Price sinks below $25K; Weekly close in BTC is awaited

• Bitcoin Price sinks below $25,000 and the correction continues.
• BTC Price below 50 day EMA and seems like 200 day EMA will also get broken.
• The BItcoin crypto price is at a 3 month low. 

Bitcoin Price drops below the $25,000 mark and trading near to the 3 months low. The correction in BTC price is still going on, which hurts the sentiment of long term investors. 

Few days ago, BTC slipped below the 50 day EMA which turned the short term trend in a downward direction. Currently, Sellers are trying to pull the prices below the 200 day EMA. If sellers succeed and prices close below the EMA then the long term trend will also turn bearish. 

In the past 3 months BTC price consolidated in the wide range between $25,000 to $31,000. But unfortunately, buyers are unable to break the high range and expand upside. 

Slow and steady sellers took over the control and pulled the prices below $25K. However, the confirmation of the breakdown is still awaited because we often see BTC bounce back and trap the short sellers. 

The confirmation of the breakdown will come when BTC price will close below $25K on a weekly time frame. 

If sellers failed to close the weekly candle below $25,000 then the possibility of bounce back will increase. Bitcoin Price is trading at $24,926 with an intraday decline of -0.80%. The 24 hour volume to market cap is 0.0356. 

Is the downfall in Bitcoin Price a bear trap

Bitcoin Price has not closed below $25,000, So the chances of bounce is still open. Buyers are trying their best to rebound to regain the confidence of investors. 

BTC price is forming a bearish pattern but it might be a trap build up for sellers. If the price is unable to close below $25K then it indicates that buyers are active and a sharp up move is possible. 

Many investors and traders, Keep eye on a weekly time frame for getting confirmation for breakout and breakdown of crucial technical levels. The technical analysis suggests, the trap for sellers is building up and BTC price might take U-turn from the support. 

BTC Price analysis on Weekly time frame

BTC Price forming a bearish candle on a weekly time frame. It retraced 50% of the previous breakout level. Previously, Bitcoin Price breakout with a high volume which increases the reliability of breakout. 

Presently, The volume is very low. Therefore, the pull back is possible. However, if the BTC Price closes below the $25,000 on the weekly timeframe then more downside will open. Positional trend will turn down and $25K will become resistance. 

On a weekly time frame, The MACD curve displayed a negative crossover indicating bearsiness. Whereas, the RSI at 48 is near to the neutral territory. 

Conclusion

Bitcoin price drops below $25,000 but the closing is still awaited. The buyers are trying their best to defend the support and rebound. Technical analysis suggests, Until BTC price closes below $25K on a weekly time frame the possibility of bounce back is high.

Technical levels

Resistance levels: $26,000 and $28,000

Support levels: $24,500 and $24,000

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.