Crypto expert Altcoin Sherpa warns that the recent correction of Bitcoin price to $27,200 could be repeated. Breaking $25,000 will lead to new lows, according to the technical analyst.
Altcoin Sherpa identifies two critical supports for Bitcoin price
BTC price rose above $30,000 in April for the first time since June 2022. It was then disappointing in May. The monthly green candle series that he has been continuing since the beginning of the year ended in May.
Crypto expert Altcoin Sherpa warns in his current analysis that the recent correction could be repeated. The technical analyst points to the 200-week and 200-day EMA lines as critical resistance and support levels. Sherpa says these indicators suggest a drop to $23,000.
“The $25,000 level would mean a lot to me personally,” Sherpa said as his short-term goal. The technical analyst notes that there are a lot of crossovers in this region. If Bitcoin falls below this level, the decline could accelerate and become more severe. The analyst says that Bitcoin will fall to $23,000 after that:
Once these support levels are broken, it wouldn’t surprise me at all to see something like a lightning drop to $23,000 followed by some sort of rebound at this 382 level (Fibonacci).
What happens if BTC drops to $25,000?
In the continuation of the video, Sherpa covered what investors should expect if Bitcoin loses the $25,000 support. The technical analyst said that he has been watching the critical support $26,500 closely in recent weeks. Now, he states that these bottoms are possible, based on the thesis that Bitcoin has not bottomed yet. Meanwhile, BTC price is struggling to maintain the $27,000 zone to clear away from the $26,500 support.
Could Bitcoin shine again this year?
Sherpa’s analysis revealed that if Bitcoin breaks $26,500, the bears will press $25,000 and then $23,000. On the other hand, positive metrics show that BTC has outperformed other markets this year. The leading cryptocurrency has surpassed crude oil, gold and silver with 14.5% returns in the last three months.
The arrival of Bitcoin’s growth in the midst of the US banking crisis reinforced the long-supported narrative of the safe haven asset of BTC. A safe haven is an asset whose value is expected to remain stable or increase during economic downturns. The crisis prompted investors to abandon bank stocks and divert their funds to the crypto economy, specifically Bitcoin.
In recent months, Bitcoin has shown an increasing divergence from the main asset classes of traditional markets. According to Kaiko, Bitcoin’s correlation with gold dropped from 50% to 11% in April, from a recent month high.
https://twitter.com/KaikoData/status/16635647771147538432
As you follow on Kriptokoin.com, historical data reveals that BTC is outperforming other markets in general.
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