- Bitcoin’s price action has been quite ambiguous lately, with buyers and sellers largely reaching an impasse as BTC struggles to gain decisive momentum
- The crypto attempted to break above USD 40,000 yesterday, but selling pressure here was significant and led to a rejection
- The price has since dropped to the $ 35,000 region, where bulls are currently trying to slow their descent and spark a rebound
- Where the following market trends may largely, if not entirely, depend on whether or not BTC can find support slowing its continued decline
- If it cuts deeper, BTC could cause serious headwinds across the market and trigger a massive sell-off among altcoins slowing their momentum and leading to further downside.
Bitcoin has experienced some intense turbulence today with bulls losing their edge on the cryptocurrency’s price action and causing it to fall to lows of $ 34,000.
The support here was somewhat significant and helped the entire market see an influx of buy-side pressure that has enabled a rebound since then.
It remains unclear whether this recovery will be enough for BTC to form a long-term bottom, as one analyst notes that a drop to $ 28,000 could be imminent in the near term.
Bitcoin grapples with slow descent after $ 40,000 rejection
At the moment of writing, Bitcoin is trading just under 10% at the current price of $ 35,300. This marks a notable drop from recent highs of $ 40,000 hit around this time yesterday.
Where the entire market trends will depend next will no doubt largely depend on whether or not bulls can create long-term support in the lower USD 30,000.
A break below could seriously harm the entire market and potentially end the cryptocurrency uptrend.
BTC could accelerate to $ 28,000 as selling pressure builds
A merchant mused the possibility that Bitcoin’s continued decline will cut deeply and send it towards USD 28,000 before it can find any long-term support.
He notes that this is the next critical level of support based on a confluence of several factors.
“The bearish $ BTC case is projecting to 28k or below, in which case we just printed a b wave – as I said, price action is ambiguous here,” he said pointing to the chart below.
Image Courtesy of Bitcoin Jack. Source: BTCUSD on TradingView.
The next few days should give some insight into where the entire market is moving towards in the short term. Any ongoing downside seen through Bitcoin can create headwinds that halt the uptrends of many altcoins.
Featured image from Unsplash. Charts from TradingView.