Bitcoin (BTC) has experienced a backlash following the continued SEC crackdown on the cryptocurrency industry. The regulatory body recently filed a complaint against the largest exchange in the industry, Binance, which contributed to the decline of Bitcoin.
However, there may be a glimmer of hope for the cryptocurrency as it has managed to recapture the $26,000 level. This is an important threshold for Bitcoin, as it must hold this level if it expects to continue its uptrend.
Despite visiting lower lows of $25,300, Bitcoin has managed to recover from the 200-day moving average (MA). This is significant because the 200-day MA has historically been a strong support level for Bitcoin.
In other words, when the BTC price has gone down to this level, it has often gone back up. This suggests bullish sentiment in the market, as traders continue to see value in buying Bitcoin at this price.
Expert discusses potential funds at $24,000 and $23,000
However, renowned cryptanalyst, Altcoin Sherpa, hason the current state of the Bitcoin market, sharing thoughts on where the bottom might be.
According to Altcoin Sherpa, Bitcoin has been seeing a lot of support at the $25,000 level, holding up well despite recent market fluctuations. However, he believes that there could be even lower levels of liquidity in the market, which could affect the price of Bitcoin shortly.
Altcoin Sherpa points to interesting support areas at the $23,000 and $24,000 levels, which could serve as a bottom for Bitcoin. However, he advises investors to be patient and wait for the market to consolidate before making any investment decisions.
The analyst notes that the ‘bottoming’ should take time, and investors should look for signs of consolidation before making any moves. He also suggests that the time may not be right to buy alts or BTC at the current level and a more cautious approach may be warranted.
Bitcoin faces a critical test
Following the same line, cryptanalyst Justin BennetThe $26,500 level had become resistance after yesterday’s break. The key support area for the next week is at $25,200, a level that served as resistance for Bitcoin. Bennet expects this to be a significant test for the market, with the potential for price action to range between $25,200 and $26,500.
Bennett advises traders to wait for a confirmed deviation below the $25,200 support level, with channel support near $24,300 serving as a potential technical catalyst. If Bitcoin recovers to the $25,200 level, traders may consider longing for range-bound BTC. Alternatively, an immediate retest of $26,500 could offer a favorable short opportunity with targets of $25,200 and $24,000.
Furthermore, Bennett notes that the path for Bitcoin remains uncertain, but a rally to $26,500 would confirm a deviation and expose $27,500.
Featured Image from iStock, Chart from TradingView.com