Bitcoin’s price is facing the risk of further downside as it struggles to maintain support at $28,000. Traders have warned that the cryptocurrency’s price might drop to $25,000, a level that some analysts believe would still be “absolutely fine.” Data from Cointelegraph Markets Pro and TradingView showed BTC/USD struggling to preserve $28,000 as support on Bitstamp. The pair looked “weak,” in the words of one analyst, as overnight events failed to resurrect any sign of its previous uptrend.
Amid local lows of $27,828, prognoses for Bitcoin now focused on a potential return to the area around a key trend line. The area around $25,500 constituted Bitcoin’s 200-week moving average — a support level originally lost in 2022 and only reclaimed in recent weeks. However, some analysts believe that a drop to $25,000 would still be a minor pullback rather than a significant trend change. Credible Crypto summarized this view, saying that a return to $25,000 is “absolutely fine” and still an example of “a little bit of a deeper pullback.”
Despite the bearish outlook, some traders remain optimistic about Bitcoin’s short-term prospects. Crypto Tony, for instance, is eyeing the potential for a long position on the day. “Approaching a high volume node + the EQ of his range. I am looking to play a long scalp here once I see the bulls stepping in,” he told Twitter followers. “Another play if the bears take over, is to short a loss of the range down to the range low at $26,600.”
However, the return to $28,000 has “completely” sealed a gap in CME Group’s Bitcoin futures. This gap was created earlier in April during Bitcoin’s run to local highs above $31,000, with market insight analyst Mickybull Crypto predicting a return to “fill” it. In accompanying Twitter commentary, however, he acknowledged that “every” gap, including one much lower down on the chart near $20,000, should see the same fate.
Overall, Bitcoin’s price remains volatile, and traders should exercise caution when making investment decisions. It is important to conduct thorough research and analysis before making any trades. This article does not contain investment advice or recommendations.
Bitcoin’s potential to serve as a currency in African countries has been gaining attention recently. In Senegal, for instance, many citizens are using BTC to conduct transactions due to the country’s unstable currency and lack of access to traditional banking services. While Bitcoin’s volatility remains a concern, its potential to provide financial freedom to individuals and communities cannot be ignored.