Over the past few days, Bitcoin has been trading in a descending channel pattern. Buyers pushed Bitcoin price above the 20-day moving average (EMA 20) on June 4, but the rise just above the candle shows that bears are still engaged in this rally.
Bitcoin price dropped on June 5 and hit a sharp drop below the immediate support at $26,500. The selling momentum increased and the BTC/USDT pair continued to fall into the critical support area between $25,800 and $25,250.
Buyers are expected to step up the defense of this support zone, as a break below this level could lead to a long downtrend. If it happens, the pair can drop to the $20,000 level.
A strong first signal would be a breakout and close above the descending channel. This could indicate the end of the correction and create conditions for a further bullish phase. In this case, the pair can surge to the $31,000 level.