Past Performance of Bitcoin Bitcoin crashed 10% from April highs last week. Prices remain below a critical support level when writing. The daily chart shows prices are stuck in a tight horizontal range below 28.6k. While the contraction was expected after continuous expansion in the better part of Q1 2023, the current correction is with relatively low trading volumes. Technically, this is supportive of buyers. Even so, how prices pan out in the next few trading sessions depends on whether bears will extend last week's gains. Any loss below FWB:27K would likely accelerate the dump, forcing the coin toward 25k.
Bitcoin Technical Analysis The selling pressure of last week will likely spill over. There was a spike in selling volumes in the second half of last week, forcing the coin below FWB:29K and 28k. However, participation is relatively low. For now, resistance remains at 28.3k while support is at FWB:27K, the trading range of the bear bar of April 21. Aggressive traders can look to short on every attempt below 28.3k. Still, there are better opportunities below FWB:27K, especially if there is a high-volume breakout below 27k. In that case, BTC may drop to February highs at FWB:25K in a retest.
What to Expect from BTC? BTC is bearish and under pressure. The correction was expected and came after a 55% surge from mid-March. Reaction levels in the medium term remain at FWB:25K and 31k. If bears press on, BTC will likely drop to February 2023 highs. Resistance level to watch out for: 28.3k Support level to watch out for: FWB:27K
Disclaimer: Opinions expressed are not investment advice. Do your research.