Bitcoin (BTC) price has been delaying a potential collapse for about two weeks. Failed bulls and troubling macroeconomic conditions reinforced the downward pressures. According to technical analysis, the most pessimistic Bitcoin prediction will be the 10% correction as the price drops to $22,139.
Bitcoin price consolidates above $27,000
BTC price produced a decisive daily candlestick yesterday below the critical support level at $26,555. The bears were absorbing all the power of the bulls at this time. Technical analyst Akash Girimath sees a 13% correction to $23,052 if this level is broken. However, the bulls can act effectively at $25,175 to stop the selling.
In the worst-case scenario, Bitcoin price will revisit $22,139 with a double-digit drop. This suggests a 5.30% drop in Bitcoin price. However, the more pessimistic scenario reveals that the sale may extend up to 16.60%.
On the other hand, the bearish view will be invalidated if BTC manages to turn the $28,051 resistance into a support base. A definitive return to $30,287 will mark the beginning of a bullish outlook for Bitcoin price. In such a case, BTC can continue its 2023 rally. According to technical analysis, the next targets of the bulls are in the $35,260 and $41,273 zones.
CryptoKid’s Bitcoin prediction: shared that he expects a 20% drop
Bitcoin has formed a bearish bias on the moving average convergence divergence (MACD) indicator on its weekly chart this week. According to crypto analyst CryptoKid, this could lead to a price drop of up to 19% in the flagship cryptocurrency.
The analyst also confirmed that he opened a short swing position for Bitcoin using the MACD bearish signal. Alongside the MACD signal, CryptoKid pointed out the head and shoulders pattern on the Bitcoin chart. In the video, he shared a chart showing that the head and shoulders pattern is still developing, with key bearish trends. CryptoKid specifically says that fulfilling this pattern will mean that the Bitcoin price will fall from the current level.
Meanwhile, despite the signals, CryptoKid states that it is still too early to confirm that the bearish trend in Bitcoin has occurred. However, he observed that the price is still above the 200 moving average, representing strong support for Bitcoin’s price. According to the analyst, if the price bounces off the 200 moving average, the trend will change completely.
CryptoKid also said that a bounce from the moving average could lead to a double top formation. However, he noted that at this point the stop loss on the short position will be triggered. He explained that if that were the case, the trend could reverse and potentially go long.
Short-term uptrend is expected
Despite bearish signals on the weekly timeframe, CryptoKid has acknowledged the existence of bullish potential on shorter timeframes. He says users can take long positions with what he describes as a “trend within a trend”. From here they can move towards the indicated resistance for a substantial profit.
US raises debt ceiling
Bitcoin price has been on the rise with the US debt ceiling agreement approved earlier this morning. As Kriptokoin.com, we have included the statements of President Joe Biden in this article.
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