Although Bitcoin (BTC) has closed the green candle for the past four days, some closely watched technical indicators suggest that the price could drop to the lowest level since December 2020 if the $29,000 support fails to hold.
Bitcoin may be at risk if it fails to hold $29,000
Bitcoin has been trading above $30,000 since the start of the week after a sharp decline over the past three weeks. However, the loss for May is still over 15%. Smaller volume tokens have also bounced back as Ethereum approaches $2,000 and loses up to 25% gain due to Cardano ADA network upgrade. Tron (TRX) and Waves (WAVES) were among the altcoins that gained double-digit value with a number of key developments that we covered in the Cryptokoin.com news.
However, Bitcoin’s recent recovery could be the last moves before another steep drop, rather than a continuous reversal of its latest drop. Based on the past price action patterns of the Bitcoin price, analysts expect a drop to $22,130 if the key support level is not maintained at $29,000.
Bloomberg analyst highlights the importance of the $30,000 zone
Jamie Douglas Coutts, senior market analyst at Bloomberg, said in a recent report that this zone will be decisive. The analyst expects the following levels in either direction:
If it can hold the psychologically important $30,000 level, it could range from $40,000 to resistance. Technically, a break below $29,000 would confirm an ominous double top pattern with the next support at $25,424, the May low, followed by the 200-week moving average at $22,130.
Coutts, in the second half of 2022, will focus the attention of seasoned traders on Bitcoin halving, a pre-programmed update that halves Bitcoin rewards for miners every four years. Wrote that they would translate it to . Halving increases the price of Bitcoin as it results in a smaller token supply. The next such event is expected to take place in mid-May 2024. Coutts highlights in the report:
Bitcoin typically performs the strongest in the 12 months after each halving as daily issuance declines.
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