Bitcoin has experienced a hard couple of days after climbing above $30,000 last week. The coin reaching a new 9-month high triggered euphoria in the market. However, it has begun to wear off as Bitcoin has now returned to $28,000 once more. The question now is where does BTC go from here? Does it continue its uptrend and is further downside more likely for the cryptocurrency?
Analyst Shares Expectations For Bitcoin
Speaking on where Bitcoin might go from here, analyst Micheal van de Poppe shared his forecasts. The analyst shared a BTC chart that showed unpredictable movement for the cryptocurrency at best, signaling that BTC had entered a region where forecasts are hard to come up with.
He put the next crucial point for the digital asset at the $27,600 level. Given that Bitcoin had previously ranged support here before its run-up above $30,000, it becomes an important level. Van de Poppe explained that the rally could continue from here but it would need to be fast. “Could take liquidity beneath, but needs a fast recovery,” he explained.
#Bitcoin is currently showing weakness.
Broke back in the range, lost one of the crucial levels.
Final crucial level is at $27,600. Could take liquidity beneath, but needs a fast recovery.
If not, and no break of $28,800, then I suspect we'll see $26,200. pic.twitter.com/TuCaFq8eIk
— Michaël van de Poppe (@CryptoMichNL) April 21, 2023
On the flip side of this is the $28,800 resistance being mounted by the bears. At this point, the analyst explains that it becomes crucial to breach this level. In the event that bulls are unable to retake it, then he puts the price back in the $26,000 territory.
BTC Enters A Perilous Position
BTC is now at a point where it becomes very important for it to at least see some upside if it is to continue holding its value. This is because its decline to $28,000 has now put it firmly below its 20-day moving average. So while Bitcoin remains bullish for the long term, the short term has turned bearish very quickly.
BTC falls to $28,000 | Source: BTCUSD on TradingView.com
Right now, there is support at $28,000 but there is no telling if this will hold as BTC is already below $28,100. The mounting resistance at $28,800 is also a deterrent right now for investors, who are choosing to keep their distance.
However, such a position also means that the possibility of the upside is just as high as that of the downside. For some, this retracement has presented a unique opportunity to get into the cryptocurrency at cheaper prices and could trigger an accumulation trend. As long as demand remains high, then $25,000 remains speculation for now.
Bitcoin’s price is still suffering losses at the time of this writing. It is currently trading at $28,033 with a 2.70% decline in the last 24 hours. On the weekly chart, it is seeing 9.04% losses, but there has been a small uptick of 5.11% in its trading volume in the last day.