Bitcoin (BTC) Loses a Key Support Level and May Drop to $23.8K

Bitcoin 1 h    Reading time: ~2 m

The global crypto market cap plummeted more than 5% over the past 24 hours according to CoinMarketCap. The drop can mainly be attributed to the SEC’s attack on Binance and Coinbase, which resulted in the total falling to around $1.05 trillion at press time. Bitcoin (BTC) was one of the cryptos that was affected by the mass selloff over the past 24 hours.

BTC’s price stood at $25,573.26 following a 3.46% drop in the last day. Furthermore, its recent price movement meant that the leading crypto’s weekly performance was pushed further into the red. At press time, BTC’s price was down 5.80% over the past 7 days.

Despite the 24-hour decrease in its price, BTC was still able to outperform its biggest competitor Ethereum (ETH) by 0.96% during this time period. Its daily trading volume was also up 24.27%. As a result, BTC’s 24-hour trading volume stood at $14,600,947,679 at press time.

Bitcoin (BTC) Loses a Key Support Level and May Drop to $23.8K0
Daily chart for BTC/USD (Source: TradingView)

From a technical perspective, BTC’s price had dropped below the key support level at $26,200 over the past 24 hours, and continued to trade below the mark at press time. Technical indicators suggested that the crypto’s price would do the same with the next crucial support level at $25,270 in the coming 24-48 hours.

The 9-day EMA line was positioned below the 20-day EMA line at press time. This was an indication that BTC’s price was in a short-term bearish cycle and would continue to drop in the following days.

Should BTC’s price drop below the aforementioned $25,270 support in the next 24 hours, then it will be at risk of dropping to $23,800 in the following week. Bulls may, however, identify this potential drop below $25,270 as a buy opportunity, which will subsequently force BTC’s price back above the key level.

On the other hand, if BTC’s price is able to remain above this price point in the coming 48 hours, then it will either consolidate for the next week between $25,270 and $26,200 or rise in the following few days. If BTC’s price rises soon, then it may reclaim a position back above $26,200, and flip the level back into support.

Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.


Updated: 06/10/2023 — 08:00

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