• Bitcoin’s price risks more downside, with $28,000 now a key level to hold in order to avoid a return to the mid-$20,000s.
• Data from Cointelegraph Markets Pro and TradingView showed BTC/USD struggling to preserve $28,000 as support on Bitstamp.
• A return to $25,000 was described as “absolutely fine” and still an example of “a little bit of a deeper pullback” rather than a significant trend change.
Bitcoin Price Risking Further Downside
Bitcoin’s price has been steadily declining since hitting new intraday lows on April 21. As traders warned that the price may fall further to around $25,000, it is becoming increasingly important for BTC/USD to hold the current key level at $28,000 in order to prevent a sharper drop into the mid-$20,000s range.
BTC/USD Struggling To Preserve Support Level
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD is struggling to remain above the important support level of $28,000 on Bitstamp. The pair looked “weak” according to one analyst who suggested that if liquidity drops below this level then prices may fall back down to around $26,200.
Analysts See Drop To Around $25K As Acceptable Pullback
Despite Bitcoin reaching new intraday lows on April 21 some analysts see any potential drop down towards the area around $25,500 (which is Bitcoin’s 200-week moving average) as an acceptable outcome and not necessarily indicative of a major change in trend direction. In fact it was even suggested by one commentator that such a move would still only constitute “a little bit of a deeper pullback” rather than something more serious.
$28K Now Key Level For BTC/USD
The current focus for traders appears to be on ensuring that BTC/USD remains above the critical support level at $28K in order to avoid any further downside risk which could take prices back towards the mid-$20,000s range once again. With analysts predicting that if this happens then there could be opportunities for buyers at lower prices in order for them make profits when prices eventually recover once again.
In summary Bitcoin is currently facing significant downside pressure and traders will be closely monitoring whether or not it manages to stay above its key support level of $28K over the coming days in order prevent any sharp declines taking place and potentially giving buyers cheaper entry points from which they can make profits when prices inevitably recover again in future weeks or months ahead.