Bitcoin’s price risks more downside as $28,000 is now a key level to hold in order to avoid a return to the mid-$20,000s.
Bitcoin (BTC) hit new intraday lows on April 21 as traders warned that $25,000 might come next.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Trader: $25,000 BTC price would be “absolutely fine”
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD struggling to preserve $28,000 as support on Bitstamp.
The pair looked “weak,” in the words of one analyst, as overnight events failed to resurrect any sign of its previous uptrend.
#Bitcoin is currently showing weakness.
Broke back in the range, lost one of the crucial levels.
Final crucial level is at $27,600. Could take liquidity beneath, but needs a fast recovery.
If not, and no break of $28,800, then I suspect we’ll see $26,200. pic.twitter.com/TuCaFq8eIk
— Michaël van de Poppe (@CryptoMichNL) April 21, 2023
Amid local lows of $27,828, prognoses for Bitcoin now focused on a potential return to the area around a key trend line.
“Bitcoin testing our key local demand at 28k and not getting the best reaction. If this level is lost, 25-26k is likely tested but this is no cause for concern,” Credible Crypto summarized alongside a YouTube video.
The video further described a return to $25,000 as “absolutely fine” and still an example of “a little bit of a deeper pullback” rather than a significant trend change.
The area around $25,500 constituted Bitcoin’s 200-week moving average — a support level originally lost in 2022 and only reclaimed in recent weeks.
BTC/USD 1-week candle chart (Bitstamp) with 200MA. Source: TradingView
A slightly more optimistic Crypto Tony nonetheless eyed the potential for a long position on the day.
“Approaching a high volume node + the EQ of his range. I am looking to play a long scalp here once I see the bulls stepping in,” he told Twitter followers.
“Another play if the bears take over, is to short a loss of the range down to the range low at $26,600.”BTC/USD annotated chart. Source: Crypto Tony/ Twitter
One gap down, more to come?
The return to $28,000 meanwhile “completely” sealed a gap in CME Group’s Bitcoin futures.
Related: Can Bitcoin reclaim $30K? Watch these BTC price levels next
This was created earlier in April during Bitcoin’s run to local highs above $31,000, with market insight analyst Mickybull Crypto predicting a return to “fill” it.
CME Bitcoin futures annotated chart. Source: Mickybull/ Twitter
In accompanying Twitter commentary, however, he acknowledged that “every” gap, including one much lower down on the chart near $20,000, should see the same fate.
Will get filled sooner or later
— Mikybull Crypto (@MikybullCrypto) April 21, 2023
“Price is currently sitting on TL support. If it loses 28000$, higher chances that we test 25500 – 26000$ and continue upward,” part of additional analysis stated on the day.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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