Bitcoin Falls Below $28K; More Correction Ahead for BTC Price?

Bitcoin’s recent dip below $28,000 has caught the attention of investors and market analysts. Currently, Bitcoin price is trading at $27,966 according to Coingape, the cryptocurrency is facing a challenging week as it grapples with the risk of further losses.

Will Next Support Hold for BTC Price?

Despite trading sideways for an extended period, Bitcoin’s stability is now threatened. The current support level is $27,718.15, while the resistance level is $29,192.26. With a 24-hour trading volume of $21,294,148,208, Bitcoin has seen a 3.75% drop in the last day. Despite the dip, Bitcoin remains the top-ranked cryptocurrency, boasting a live market cap of $543,844,429,644.

             BTC/USD 1-day price chart, Source, Coinmarketcap

The release of the latest Federal Reserve minutes on August 16th has further sharpened the focus of Bitcoin bears, with buy-side interest declining and sending BTC/USD to near two-month lows of $28,300. 

BTC Price Technical Analysis

On the 4-hour price chart for BTC, the Commodity Channel Index (CCI) is negative, registering a value of -323 and showing a downward trajectory. This pattern suggests heightened selling activity in the market and hints at a potential price turnaround. Despite the current BTC price downtrend, an upward shift may be on the horizon.

The Kelter Channels (KC) on the BTC market price chart show upper and lower values of 30,299 and 28,098, respectively. This movement indicates a significant decline in the market. Should the price drop below the lower line, the downward trend may continue, providing opportunities for profit-taking or short-selling.

BTC/USD 1-day price chart, Source: TradingView

Research and data analysts have noted the significance of the 200-day and 200-week SMAs as potential support lines for Bitcoin. The 200-week SMA has been observed as a support line during downward BTC price movement periods. Recent analysis suggests that maintaining this trend line might influence Bitcoin performance in the coming month.

In conclusion, Bitcoin recent dip below $27,000 and its current trading price of $27,978 have raised concerns among investors and market analysts. The cryptocurrency’s stability is threatened as it faces a challenging week ahead.