Bitcoin continues to struggle to hold an important level – Check out these insights and predictions from leading analysts

Bitcoin continues to struggle to hold an important level - Check out these insights and predictions from leading analysts

Bitcoin is once again violating the support level located near $26,500. In doing so, it is finding a bounce on the key moving averages, which we mentioned in our last analysis. Here’s how leading market analysts view the situation.

Material Indicators again illustrate support and resistance

Analyst @MI_Algos, a regular on our list, points out the Fed chairman’s speech and indicates the distribution of market orders in the process.

We can clearly see support at $26,000, as well as resistance located near $27,500. In addition, new orders are just flowing into the market, which may further narrow the upcoming price action. They fill the area around $26,350, as well as the area around $27,150.

In the earlier data cited by @MI_Algos, one can see a very solid portion of purchase orders, spread out around $25,500. Theoretically, this could mean that any declines in the price of Bitcoin, could result in a strong attempt to rebound just from this area.

The level of interest from buyers, coincides here with our observations. Looking at the chart, we can see that the area around $25,500, is the local peak set a few weeks ago. From a technical point of view, it has the right to become support.

Maartun warns of possible government sell-off

The on-chain data analyst known as @JA_Maartun shares a very interesting observation on his Twitter account. Referring to a post posted in mid-April, he draws attention to a possible BTC sell-off by the US government. Recall that U.S. regulators own a significant portion of Bitcoin, which they expect to dump on the market this year. @JA_Maartun points out that these operations may take place at regular intervals.

The analyst concludes this hypothesis with these words:

“A friendly reminder that the second batch of about 9825 BTC could hit the market in 8 days – from now until May 26.”

If indeed such an event were to occur, the $25,500 level could soon be tested. 

Dude more bearish than the rest of the market

In contrast, technical analyst @cryptodude999 sees the current price action of the leading cryptocurrency as bearish. In his view, there are legitimate concerns that Bitcoin will dive even deeper.

In the posted graphic, @cryptodude999 illustrates that Bitcoin faces the possibility of visiting the March lows. Thus, he does not rule out dips as low as $20,000.

Does this scenario have the right to come true? From the current perspective, it is difficult to judge. However, if it does, it will confirm the theory of a potentially ongoing “echo bubble.”

Seth takes a weekly perspective

Undoubtedly, Bitcoin’s current price action and prolonged yet broad consolidation is creating uncertainty about the coming days. This is noted by @seth_fin who decides to take a look at Bitcoin from a weekly perspective.

Among other things, he points out the 200-week moving average, which we have also mentioned in our analyses. In his opinion, further consolidation in its area, and a subsequent breakout, is most warranted.

If, on the other hand, you are interested in the broader opinion of our analyst, we invite you to read the article entitled: “Bitcoin defends a key support level, reaching an important milestone in the meantime.

Picture of Łukasz

Łukasz

Market Analyst

Disclaimer: Blockbulletin does not take accountability of investments based on the information of the website. We highly advice readers to make extensive research prior to any invest

Share this article

More analyses

All articles loaded
No more articles to load

More news

XRP

XRP outperforms Bitcoin and Ethereum

In the past week, XRP decisively outperformed its main rivals, Bitcoin (BTC) and Ethereum (ETH), in terms of capital flows. Moreover, it recorded an impressive $2.7 million…

Solana and Avalanche on the eye of investment funds

Two alternative coins, Solana (SOL) and Avalanche (AVAX), are gaining increasing interest and are successively attracting the attention of investment funds. Although bitcoin (BTC) remains the main…
All articles loaded
No more articles to load

Learn more

Cryptocurrency wallets

Cryptocurrency wallets

We talked about security when trading crypto assets in an article titled “Online security“. We also mentioned how important it…
hardware wallets

Cryptocurrency hardware wallets

From the article titled “Cryptocurrency wallets” you learned about the different types of wallets. They were briefly characterized there. Let’s…
Where to buy cryptocurrency brokers

Which cryptocurrency Brokers to use

In the article “Where to Buy Cryptocurrencies (Exchanges)“, we introduced you to which exchange platforms you can purchase cryptocurrencies on.…
Trading cryptocurrencies

Trading cryptocurrency

In the cryptocurrency market, you face many opportunities to invest in cryptocurrency or buy or sell cryptocurrency. If you want…
All articles loaded
No more articles to load

Latest news

All articles loaded
No more articles to load