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
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.