Bitcoin (BTC): Towards violent upward movements?

BTC maintains a bearish trend and is likely to end the week lower. Its price is currently stabilizing around $26,800. For a possible bullish rally, bitcoin (BTC) will need to rebound from one of these support levels.

In the medium term, bitcoin (BTC) is in bearish momentum

Despite the bullish pressure over the weekend of May 27, the price of BTC failed to move higher. After approaching $28,500, the queen of cryptos retreated, closing last week with a 5% decline. Currently, bitcoin (BTC) is trading around $26,800 and could experience further decline.

Indeed, the price was rejected lower by the 50-day moving average, which sits near the upper part of the medium-term declining channel. This suggests that the bearish momentum from the year high at $31,035 may continue. In this case, bitcoin (BTC) could drop to key support at $25,280, representing a potential downside of 5%. This support level is currently closest to the price.

bitcoin support
Bitcoin (BTC) candlestick chart, daily scale – source: TradingView

If this support is broken, the 200-day moving average could lead to a rebound. This bitcoin (BTC) long-term trend indicator currently sits at $23,272. This zone could therefore constitute a major support. Moreover, the 61.8% Fibonacci retracement level of the March range is also located in this zone, which underlines the importance of this support.

A sell position?

As long as the upper part of the downtrend channel remains intact, medium-term bullish scenarios are unlikely. In such a bearish market, it would be interesting to sell bitcoin (BTC) with the objective of one of these two support levels.

bitcoin support
Bitcoin (BTC) candlestick chart, H2 scale – source: TradingView

In this case, half of the weekend range could be an entry point for a short position. Thus, it would be possible to consider a retracement of bitcoin (BTC) to this level before a drop towards $25,281.

Entry points: $27,186;

Stop: $27,476;

Goal 1: $25,281;

Objective 2: $23,300.

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