Bitcoin price balances in support zone

The bitcoin (BTC) price has taken a dip in the past week that has brought it to the current zone, just above $26,000.

At the time of this publication, as can be seen in the CriptoNoticias Calculator, the digital currency created by Satoshi Nakamoto is trading at 26,300. This price is relevant, since the cryptoactive is in the support zone. That is to say, an area in which in the past it showed strength and there were rebounds towards the rise.

According to the postulates of technical analysis, two situations could occur. The first of these is that bitcoin undertakes a new bullish momentum. If so, it is possibly going towards the $30,000 area, where the top of this side channel is. The other possible situation is let bitcoin break the channel down. In that case, it would run into a new support zone near $25,000.

About what BTC will do in the coming days, there are different opinions. The trader who identifies himself on social networks as SantinoCripto, for example, is bullish. He justifies his position by mentioning that “BTC is right now at the bottom of the bullish channel that it has been forming since the beginning of 2023.” He complements his statement by explaining that the RSI indicator (or relative strength index) is reaching its support line, so it could bounce, just like the asset price. “Regarding technical analysis, these are levels to go LONG (in futures) clearly, or spot purchases,” says the trader.

There are also those who are less optimistic about the near future of the bitcoin price. The analyst of the bitcoin and finance disclosure channel, Inversión Cripto, is based on the macroeconomic context to be mostly bearish relative to risky markets. He mentions the fact that Germany entered a technical recession as a possible prelude to a general recession. Other countries could follow. Added to this is the uncertainty about interest rates in the United States. Will they continue to rise, will they fall, or will they remain stable? The Federal Reserve (Fed) has not confirmed anything, yet.

From a technical point of view, Inversión Cripto does not rule out that bitcoin could rise to levels close to USD 26,400 or 26,800, due to the fact that a bullish divergence is observed in the RSI. Anyway, It seems more likely that in the coming days it will reach the USD 25,000 area.

“The bottom line is that we see bitcoin, cryptocurrencies and other indices at key points. If we lose these levels —in the case of bitcoin, it has already lost it and other cryptocurrencies are about to lose them— we would have a small panic in the market. That panic will drive down the price of many coins that have ballooned in the last month and a half because people thought that everything bad was over, that bitcoin had risen from $15,000 to $30,000. Now, we will probably see the market go down, which was slow and agonizing before, but now we will surely have a little bit of a cascade down that takes bitcoin towards $25,000.”

Inversión Cripto, market disclosure channel

Given these various analyzes and predictions, often contradictory to each other, it is clear that uncertainty reigns in the market. In such a situation, perhaps it is best to remain calm, not trade or trade strategies that adapt to this volatility, such as DCA.