• BTC has been trending downward for several weeks, making lower highs and lows.
• The key $30K resistance level has not yet been broken.
• A bearish breakout from the $27,500 resistance level could lead to a drop to the $25K support level.
BTC Tests Critical Resistance
Bitcoin’s price has been dropping recently after failing to break through the key $30K resistance level. The 50-day moving average, located around the $28K mark, has also been broken to the downside and would act as resistance until the price trades below it.
Potential for a Drop to $25K
$25K seems the most likely target in the short term, as it is a strong support level that the bulls could count on. The 200-day moving average, trending around the $23K level, could also be tested if $25K were to break down. It’s important to note that while the price is still above the 200-day moving average, it is technically considered a bull market.
Bullish Flag Formation on 4-Hour Chart
Looking at the 4-hour chart, Bitcoin is currently testing its potential for a bullish rally by forming a large bullish flag below the $30K mark. These patterns are generally known as bullish continuation patterns if they break out in an upward direction. However, due to recent rejection from this same level of resistance at $27,500 it is likely that this pattern will need further testing before any kind of upward momentum can be seen again.
Bearish Breakout Could Lead To Drop To 25k
If there is a bearish breakout from this pattern and from its current support of $25k then we may see BTC drop back down even further towards its 200 day Moving Average of around 23k or even lower than that depending on how much selling pressure there is in play here currently.
Technically Considered A Bull Market
It’s important to note that while Bitcoin’s price is still above its 200 day Moving Average then it is technically considered a bull market despite recent drops in value and failure to break through certain levels of resistance like 30k or 27 500 respectively already mentioned earlier in this article