Market Analysis

BITCOIN PRICE ANALYSIS & PREDICTION (October 12) – BTC Loses $27k As Volume Indicator Continues To Flat – Potential Crash Ahead?

After bouncing off a crucial six-month low in mid-September, Bitcoin saw a 15% recovery in two weeks and retested August’s support as resistance. It initiated a fresh drop from there and now looks weak on a daily.

Last week, Bitcoin tested the $28,620 level following a mini-rally in the past month. The bears reacted strongly to the price level and the rally halted with a rejection. That action triggered a drop and the leading coin resumed bearish.

This week, the volatility expanded notably and the price fell to the low of $26,600 yesterday, which is considered a retest of last week’s break out of a resistance line. The low-price level was rejected, with a slight bounce as it now changes hands at around $26,800. 

The break and retest pattern may become valid if the bulls show a strong reaction above the $26,000 support level that produced a second leg up for Bitcoin during last month’s recovery. Otherwise, a drop below the support would not only invalidate the pattern but could trigger more dip.

However, there’s still hope for the bulls if the $25,255 and $25,000 support levels – marked as six-month lows – continue to hold. A crackdown on this support could see the price drop to $20,500 – validating a head and shoulder pattern.

While BTC holds a market cap of $523.5 billion, its dominance is currently 50% as the fear and greed index stands at 40. So far, the daily volume indicator has continued to flat by the day – showing no sign of a strong buy at the moment.

Bitcoin’s Key Levels To Watch

Source: TradingView

Should the price further drop and pass through the mentioned support levels, the closest levels to watch for more breakdown are $24,000 and $22,100.

Currently, the $27,195 level is held as resistance. If Bitcoin reclaims this resistance, the next level for breakups would be $28,000 and $28,618.

Key Resistance Levels: $27,195, $28,000, $28,618

Key Support Levels: $26,000, $25,255, $25,000

  • Spot Price: $26,800
  • Trend: Bearish
  • Volatility: High

Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.