Recently, the BTC price experienced a drop of almost 3%, settling at around $35,596.31. This decline has raised concerns among investors as it breached a crucial support level and exited a mid-term positive price channel. The daily technical analysis of BTC indicates a potential continuation of this downward trend over the next 24-48 hours.
Breaking Down the BTC Price Drop
Over the past day, Bitcoin (BTC) recorded a 2.82% decrease, as per data from CoinMarketCap. This resulted in the leading cryptocurrency trading at $35,596.31. This significant correction might not be the end of the story, as technical indicators hint at a possible continuation of selling pressure on the BTC price.
In the past few days, BTC managed to close a daily candle above the $36,900 mark but failed to convert this level into a support. This was shortly followed by profit-taking activities by traders, causing the BTC price to drop below this mark. The selling pressure also pushed BTC out of a mid-term positive price channel that had been established on its daily chart over the previous two weeks.
Future Predictions for the BTC Price
During the previous trading session, BTC hit a low of $34,800 before slightly recovering to end the session at $35,551.19. If BTC closes today’s daily candle below the ascending channel, it may risk testing the immediate support level at $34,100 within the next 24-48 hours. If the selling pressure persists, the BTC price could drop further to the next support level at $31,400.
However, if BTC manages to close today’s trading session within the positive channel, it could negate the bearish outlook. To initiate another upward movement, the cryptocurrency would need to stay within this channel for the next two days. Investors and traders might want to wait for BTC to secure a position above $36,900 before entering a long position. Establishing a strong base above this significant resistance level could pave the way for BTC to rise to $39,200 in the coming days.
Technical Indicators Suggest Further Drops
However, technical indicators suggest that the BTC price dropping trend might continue in the next 24-48 hours. The Moving Average Convergence Divergence (MACD) line has fallen below the MACD Signal line over the past three days, indicating that the bearish trend may still be in play. Furthermore, the Relative Strength Index (RSI) on BTC’s daily chart indicates that sellers are currently more powerful than buyers.
Despite BTC’s 32% gain over the past month, a healthy correction might be necessary for the cryptocurrency to continue its upward trajectory. With the help of platforms like cryptoview.io, investors can keep a close eye on these market trends and make informed decisions.
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