In the middle of the storm, Bitcoin dropped below $28k in the past hour, looking for support to hold pressure. It may suffer more losses in the hands of the bears. But if solid support is located, a major recovery will start in no time.

Bitcoin retested the $30k level as resistance in the past week but unfortunately rejected the level with a double-top pattern on the lower time frame. 

It started to show signs of weakness yesterday and plunged to around $29k before slipping to $28.5k earlier today. It stayed around that price level during the New York session and closed the price at $28.1k.

Just an hour ago, the price dropped off the $28k after a small consolidation around the mentioned New York closing price. The daily engulfing candle formation is also a strong indication of big drops.

However, volatility may slow down a bit as the price nears a crucial support level at $27k – capable of releasing a massive sell-off at the lower boundary of the broadening wedge pattern once the price flips it. A strong push from this same level could as well fuel a fresh increase with a double-bottom pattern.

However, things might get uglier than this in the next couple of days as Bitcoin targets February’s high (as support) in the ongoing sell-off. The major price target to watch out for in this healthy correction is the March breakout level of $23k.

Bitcoin’s Key Levels To Watch

Source: Tradingview

In the meantime, the close support levels to pay attention to are $27k and $26.6k. The $25.2k support level is expected to provide a small recovery. If a recovery fail, the price may extend bearishness to $24k before rising back.

A strong push above $28k could lure buyers back as the $28.8k resistance level stands for a retest, slightly above the resistance line. While the $30k resistance remains a crucial level for the bulls, the $30.7k and $31.5k levels would be their next targets for

Key Resistance Levels: $28,867, $30,000, $30,700

Key Support Levels: $27,000, $26,600, $25,200

Spot Price: $27,880
Trend: Bearish
Volatility: High

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

Image Source: kasza/123RF // Image Effects by Colorcinch

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Filed under: Bitcoin - @ May 4, 2023 5:20 am