Bitcoin Price Analysis: $BTC Price Eyes Short-term Correction to $25000; Buy this Dip?

Bitcoin Price Analysis: On May 29th, the Bitcoin price showed its third reversal from the resistance trendline of the channel pattern carrying a correction phase for nearly two months. The bearish reversal tumbles the coin’s market value by 4.6% and pushes it to the current price of $27201. In addition, this downfall breached local support of $27500 indicating the BTC price is poised for a longer correction.

Also Read: Bitcoin, Crypto Market Crash Looming In June After Debt Ceiling Saga: Bloomberg

Ad

Ad

Bitcoin Price Daily Chart

• The current correction phase in Bitcoin price still moving above the 50% Fibonacci retracement level indicating the overall market trend remains bullish
• A breakdown below $27500 support puts the BTC price at risk of a 7-11% drop
• The intraday trading volume in Bitcoin is $14.2 Billion, indicating a 21% loss.

Source-Tradingview

Typically a bearish reversal from the channel pattern’s resistance trendline triggers a new bear cycle which bolsters a downfall to the lower trendline. Therefore, under the favorable bearish market sentiment, the BTC price is likely to plunge  7% to hit the significant support of $25000.

The aforementioned support aligned with the 38.2% Fibonacci retracement phase and 200-day EMA creates a strong accumulation zone for buyers. If case buyers lose this footing, the BTC may see a sharp drop to $24000 and revisit the lower trendline.

However, both the aforementioned $25000 and $24000 stand as important demand zones that could end correction in Bitcoin.

Ad

Ad

Will Bitcoin Price Retake $30000?

In theory, the falling channel pattern usually triggers a massive upswing upon the breakout of its resistance trendline. Thus, interested buyers must wait for a breakout above the overhead trendline to recuperate bullish momentum. This potential breakout may push the resume price recovery and hit the price back to $31170.

• Moving Average Convergence Divergence: The MACD(blue) and signal(orange) line closing in for a bearish crossover would give an additional confirmation for a drop to $25000.
• Supertrend: The daily chart projecting a red film indicates the short-term bearish trend in Bitcoin remains intact.