With Bitcoin testing support around $27,000 after trading in the red for the last week traders are looking for the digital asset's next move.
With Bitcoin (BTC) testing support around $27,000 after trading in the red for the last week, with its price losing 8.76% of its value, cryptocurrency traders and investors are looking for the flagship digital asset’s next move.
On April 24, crypto analyst Michaël van de Poppe predicted a rebound for Bitcoin, with the cryptocurrency expected to recover to $29,200 in the coming weeks. The prediction comes as BTC has been facing negative funding, which according to the analyst, “we’ll be having a bounce play soon.”
When funding becomes negative, it means that traders short on Bitcoin are paying those long on Bitcoin, which typically indicates a shift in market sentiment.
Bitcoin’s rejection at current levels has also led van de Poppe to anticipate the creation of ‘bullish divergences’ in the $26,500- $27,000 area. The trader believes that Monday (April 24) is a “dump day” for Bitcoin; however, he also believes that a recovery to $29,200 could follow, provided that the bullish divergences materialize.
Bitcoin rebound to $29,200. Source: Michaël van de Poppe
Bitcoin acceleration to $29,200
Moreover, the leading analyst noted that Bitcoin has corrected after the CME gap was filled, pushing the cryptocurrency back towards resistance for the second time. As a result, Bitcoin is now trading in a tight range, with traders closely watching the key levels.
According to van de Poppe, if Bitcoin manages to break through the $27,800-$28,000 range in the coming days, it could accelerate towards $29,200. However, Bitcoin’s momentum will depend on its ability to sustain a breakout above the resistance level.
Despite the uncertainty, van de Poppe’s analysis offers a positive outlook for Bitcoin, which has struggled to maintain momentum in the last week.
Bitcoin is presently being traded at $27,309, reflecting a decline of 1.32% in the past 24 hours and a further 8.66% over the previous week. The total market capitalization of BTC stands at $528.5 billion.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
Read more cryptocurrency news on Finbold.com.