The mother of cryptos exhibits volatility but shows no significant large-scale movement. In the medium term, its price still shows a downward trend. Until the current hurdles are overcome, bitcoin (BTC) could drop as low as $25,000.
Bitcoin (BTC) remains undecided
Bitcoin (BTC) is currently undecided. Earlier in the day, it registered a 2% decline, erasing all the gains made earlier in the week. Although analysts have pessimistic predictions, there is no significant large-scale movement seen despite the volatility. Indeed, bitcoin (BTC) is holding within a price range between $27,500 and $26,500. However, there could be some big moves soon as the price is currently on the verge of breaking out of a compression triangle.
Given the medium-term downtrend, there is a possibility that the triangle will break down. In this scenario, the next level of support is located at $25,200. It could be an interesting buying area. A bullish outlook will only be possible if the hurdle of $27,500 is crossed. Even if bitcoin (BTC) manages to break above this level, the bulls will have to push the price above $29,808 to change the medium-term trend. If such a scenario plays out, BTC is likely to hit new highs above $31,000.
A weekly close in the red?
It is possible to see a weekly close in the red for bitcoin (BTC) with this potential drop to $25,000. In this case, a sell position could be interesting. If the price breaks below Monday’s low, it would confirm the short-term downtrend. In this situation, one could expect a retracement up to $27,100 before a descent towards $25,200.
If bitcoin (BTC) breaks through Tuesday’s high around $27,500, it would invalidate the bearish thesis. In such a scenario, one could see a move towards the next resistance at $28,337.
Trade setup:
Admission: $27,160;
Stop: $27,500;
Goal: $25,200.
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