Bitcoin experienced an unanticipated decline from the $29K mark, leading to a substantial breakdown of the pivotal 100-day and 200-day moving averages. Following the bearish trend, how low can BTC go?

Technical Analysis

By Shayan

The Daily Chart

After plummeting from the $29K threshold, Bitcoin’s price dropped below the critical 100-day and 200-day moving averages, finding support amid the significant $25K level, where a bounce was initiated.

This sudden upward surge was a direct response to developments in the SEC-Grayscale case, wherein Grayscale secured a favorable court ruling regarding the transformation of GBTC into a Bitcoin ETF.

However, this initial rebound was followed by a retracement to retest the 200-day moving average, leading to another impulsive downward movement that once again reached the crucial support zone at $25K.

While this price action does signal a pronounced bearish sentiment in the market, it’s important to note that a potential re-confirmation of support could pave the way for another bullish rebound, potentially transitioning the market into a consolidation phase. Conversely, the prospect of a cascade becomes likely should the price dip below the $25K mark.

The 4-Hour Chart

Looking at the 4-hour timeframe, it becomes evident that the downward trajectory came to a halt when Bitcoin arrived at the significant $25K support region, leading to a brief consolidation characterized by low volatility. Yet, the price experienced a sudden rebound, marked by the appearance of a substantial green candle.

However, as the price climbed and reached the critical 61.8% Fibonacci level, a pivotal target in the correction stages of the market, buying pressure weakened, prompting a reversal. Consequently, Bitcoin embarked on another impulsive retracement, driving its price back towards the $25K range.

In the days ahead, the $25K threshold serves as a substantial psychological support level should sellers manage to push the price beneath this critical mark. The market could witness another swift descent toward lower price thresholds.

On-chain Analysis

By Shayan

This chart illustrates the 14-day moving average app