Bitcoin

Edge

The price of bitcoin has faced significant downward pressure in recent weeks, with the cryptocurrency dropping below its 200-day moving average (MA), <a href="https://twitter.com/ali_charts/status/1693392465607406020?t=DlznQ-eTAC2DF55T90OdqQ&amp;s=19" target="_blank" rel="noopener noreferrer nofollow">according</a> to trader Ali. This key technical indicator has marked previous major corrections in bitcoin’s price history, often preceding drops to the “realized price” – an on-chain metric that currently sits around $20,350. 
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Ali also <a href="https://twitter.com/ali_charts/status/1693330557944451074?t=mxbz7Qd44YSm5K0GwOEG7g&amp;s=19" target="_blank" rel="noopener noreferrer nofollow">pointed</a> to a buy signal on the daily chart after the TD sequential indicator presented a setup, but confirmation of a trend reversal would likely require a sustained close above the 200-day MA. For now, the $25,200 to $24,800 zone is being watched closely as a potential pivotal support zone. Breaching this area could pave the way for a more significant bitcoin price dip toward the $20,000 level. 
The weekly chart is also looking increasingly <a href="https://twitter.com/blackwidowbtc/status/1693429257463341409?t=d9s1iHbcO-3xw2J4oiOnGg&amp;s=19" target="_blank" rel="noopener noreferrer nofollow">bearish</a>, with the price closing below key exponential moving averages. According to some, if the current technical setup proves to be a bull trap fakeout, bitcoin would need to reclaim key levels quickly to avoid further downside. The fact that a final volatility gauge (FVG) opened near current levels adds weight to the bearish scenario of a wick down to around $20,000 before any substantial bounce materializes. 
Historical price cycles also suggest bitcoin’s bear markets are often followed by even larger bull runs. While short-term price action remains uncertain, some still see potential for new highs in the long-term as adoption continues to grow. For now, analysts and traders alike will be closely monitoring price action and key levels around the $20,000 zone. 
Bitcoin is currently hovering around $26,000 after dropping from its 30-day high of $30,000. 
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The post <a rel="noopener noreferrer nofollow" href="https://captainaltcoin.com/bitcoin-could-crash-to-20k-as-it-teeters-on-the-edge-while-bears-aim-for-a-drop/">Bitcoin Could Crash to $20K as It Teeters on the Edge While Bears Aim for a Drop</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://captainaltcoin.com">CaptainAltcoin</a>.

Bitcoin Could Crash to $20K as It Teeters on the Edge While Bears Aim for a Drop

CaptainAltcoin

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