Key Takeaways:
- Bitcoin price declined significantly below the 50-day simple moving average (blue).
- BTC/USD declined below a contracting triangle, with support at $28,250 on the daily chart.
- The price could start another plunge if it slides below the $24,800 support.
NEW DELHI (CoinChapter.com) – Bitcoin price declined heavily below $28,000. BTC/USD is now at risk of another drop unless the bulls push it back above $28,500.
Bitcoin Price Signals Bearish Moves
After many rejections, Bitcoin prices started a major decline from the $31,500 zone. The BTC/USD pair nosedived below the $30,000 support zone.
A sharp move was below the $28,500 support and the 50-day simple moving average (blue), dragging Ethereum and altcoins lower. Besides, the price declined below a contracting triangle with support at $28,250 on the daily chart.
Finally, the bulls appeared near the key support at $24,800. A low is formed near $24,713, and the price consolidates losses. It is trading below the 23.6% Fib retracement level of the recent drop from the $31,845 swing high to the $24,713 low.
Bitcoin bears seem to be in control and could aim for another plunge. If there is an upside correction, the price could face resistance near the $26,500 level.
The next key resistance is near the $28,500 zone and the triangle trend line. It is close to the 50% Fib retracement level of the recent drop from the $31,845 swing high to the $24,713 low. A successful daily close above the $28,500 resistance could initiate a steady increase.
In the stated case, Bitcoin could drift toward the $30,000 level. Any more gains might push the price toward the $31,500 resistance zone.
Another Plunge?
Conversely, Bitcoin could start another decline from $26,500. Immediate support is near the $25,450 level. The main breakdown support is now forming near the $24,800 level. A close below the $24,800 support might spark another nasty decline.
The price may decline toward the $23,200 level in the stated case. The next key support is near the $22,000 level. Any more losses could open the doors for a move toward the $20,000 pivot level in the coming weeks.
Overall, Bitcoin price is correcting losses and consolidating below $26,500. To start a recovery, it must clear $26,500 and then challenge $28,500. Conversely, the price might decline below the $24,800 support zone.
The post Do or Die For Bitcoin Bulls: Here’s What Could Trigger Another Sharp Decline appeared first on CoinChapter.
