The price of Bitcoin has dropped by approximately $4,000 since the approval of Bitcoin ETF spot funds in the US, causing concerns in the market. This digital currency may continue to decline in the near future. Let’s examine the key information in this situation:
1.Technical Support: On the daily chart, we can see that Bitcoin is moving within an upward channel. The 50-day Exponential Moving Average (EMA) has provided support near $42,120 USD. However, the Relative Strength Index (RSI) indicates a lack of strong upward momentum, and the RSI has formed lower highs, suggesting bearish divergence.
2.Next Support Level: If the Bitcoin price breaks below the 50-day EMA, it may seek the next support level near the lower trendline of the ascending channel. This trendline coincides with Bitcoin’s 200-day EMA, around $34,850 USD, a low not seen since the fourth quarter of 2023.
3.Predictions: There are predictions that Bitcoin’s price could drop to the range of $25,000 – $30,000 USD. This might be where recent Bitcoin buyers accumulate more. Investors who bought in this range may wait to sell to institutional buyers and establish a new market bottom.
4.Positive Outlook: However, there are also optimistic views that BTC’s price could rise to $50,000 or even $60,000 USD in the near future. Bitcoin’s flag pattern suggests this possibility, with a target of $56,200 USD by March 2024.