Bitcoin Price dropped below $28K; Correction began in BTC price?

• Bitcoin Price dropped below $28,000 and struggles to hold a 50 day EMA.
• BTC Price faced resistance at $30,000 and reversed in downward direction.
• Bitcoin Price Prediction suggests a rise in the long term but short term correction is possible.

Bitcoin Price dropped below the $28,000 and witnessed profit booking from the higher levels. It faced resistance at $30,000 and slipped down by forming lower lows candles which hurted the market sentiment. 

BTC price dropped below the 50 day EMA shows initial signs of the short term trend reversal. However, the price is still sustaining above the 200 day EMA indicates the positional trend is still in the upward direction. 

Bitcoin price have tried twice to break out of $30.00 but get rejected. It shows strong sellers are active on the higher levels and it will be difficult for bulls to dominate on higher levels. 

Bitcoin Price is trading at $27,574 with an intraday decline of -0.34%. The 24 hour volume to market cap ratio is 0.0304. At the mid of March, BTC Price breakout of the swing hurdle at $26,000 with a strong buying volume. Later, prices began to rise and rallied 18% approx in the short period of time. 

However, the rally took a halt near to $30K and prices got stuck into the narrow range of consolidation. Presently, the sellers are attempting to break the lower range to expand downside.

Will Bitcoin Price expand downside and test $26K?

Bitcoin Price corrected 12% approx from the recent swing high and buyers are struggling to defend the lower range support. If buyers succeed to defend the $26,000 support then the possibility of rebound will remain high. However, if the price dropped below $26K then it will trigger the negative sentiment and bears will try to drag it further down to $24,000. 

However, till price sustains the $24K support any short term correction will have high probability of bouncing back from the levels. The technical analysis suggests BTC price is in short term correction mode and downside seems to be limited.

BTC Price: Technical Outlook

BTC price forming a bearish candle on a weekly time frame but buyers are trying to defend the support. However, the next phase of downmove will begin when the price dropped below $24,000. 

The technical indicators like MACD had generated a negative crossover. It indicates bearish momentum might continue for some more time. The RSI at 43 sloping sideways denotes prices is near to neutral territory and equal level of tug of war between buyers and sellers. 

Conclusion

Bitcoin Price dropped below $28,000 and corrected 12% approx from the recent swing high. If the selloff continues then the BTC price might test $26,000 which will act as an important support. The technical analysis suggests, BTC price is in correction mode and short term correction will have high possibility of bouncing back from lower levels. 

Technical levels

Resistance levels : $30,000 and $31,000.

Support levels : $26,100 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.