While the BTC price risks falling below $25,000, Bitcoin analysts are giving bearish targets. It’s getting harder and harder to hear bullish voices when it comes to short-term BTC price movements.
Van de Poppe expects another drop in Bitcoin price
As you follow on Kriptokoin.com, the leading cryptocurrency is moving around $ 27,700. However, BTC suffered deeper losses the previous day. It also marked the local bottom with a touch of $27,300 so far. Traders hope May 10 will provide much-needed volatility with the US Consumer Price Index (CPI) data for April.
One to watch, #CPI figures due out tomorrow. High CPI to cause decline in risk assets and low CPI to cause a rally pic.twitter.com/gnjGt1XuPV
— Matthew Dixon – CEO Evai (@mdtrade) May 9, 2023
Popular crypto analyst Michaël van de Poppe told his Twitter followers, “$27,800 has now become resistance. Therefore, Bitcoin is still in a downtrend. I expect another drop. Then we are ready to take your long positions in anticipation of the CPI,” he says. The analyst adds that a bullish divergence in trading volume is needed to continue the recovery.
BTC explanatory chart / Source: Michaël van de Poppe/TwitterOther analysts also expect a drop for BTC
Others are certainly less optimistic. Popular analyst Game of Trades predicts bearish moves to come.
Bitcoin is likely setting up for more downside:
Excess optimism ✅
Head and shoulders pattern ✅
Bearish momentum ✅ pic.twitter.com/OpRasEmbBJ
— Game of Trades (@GameofTrades_) May 8, 2023
“A confirmed breakdown will have an implied target near the $24,000 region,” the analyst adds.
Another analyst, Crypto Tony, takes a similar position. In part of his own analysis, he continues to warn of more negativity to come. In this context, the analyst says:
When we lose $27,000, things start to escalate from here. $25,200-24,200 are my main goals for now. I’m going to take some profit here.
BTC caption chart / Source Crypto Tony/TwitterRealized price data agrees with the bearish thesis
Meanwhile, considering its own goals, on-chain analytics platform CryptoQuant proposes realized price clusters as potential support. Contributor Abramchart marks the area around $25,600 as a must watch in one of his Quicktake blog posts.
It achieves this through the use of the UTXO Age Bands metric, which measures the price at which various bands of BTC last moved. “The closest area of support is at $25,619, which represents the average purchase price of wallets that have purchased Bitcoin in the last 3-6 months,” Abramchart summarizes.
Bitcoin Actual Price UTXO Age Bands chart / Source: CryptoQuantCaution: This pattern is causing problems for Bitcoin!
BTC is a ‘textbook’ example of a head and shoulders pattern that shows it will suffer more. This is leading the downward trend. As analyst Game of Trades observed, Bitcoin started forming a ‘left shoulder’ pattern in early April, a ‘head’ in late April and early May, and a ‘right shoulder’ pattern in early May.
In this regard, Bitcoin bears may continue to show strength against the bulls. According to the expert’s chart patterns, a confirmed breakdown will have an implied target near the $24,000 region. Therefore, further declines in BTC price are possible.
Bitcoin price action and pattern analysis / Source: Game of TradesIn addition to the pattern above, the analyst says that the over-optimism and bearish momentum all show that “BTC is probably getting ready for further declines” in a follow-up tweet and accompanying chart that includes the moving average convergence divergence (MACD) indicator.
Bitcoin price action and MACD analysis / Source: Game of Trades
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