Bitcoin is on course to end the week with a sharp drop of around 9%. This suggests that some traders could book profits on fears of the downtrend resuming. Analysts expect Bitcoin to reach the $26,600-$25,000 zone where buying interest could increase. The 20-day EMA has started to turn down from ($28,606) and the RSI is in the negative territory, suggesting that the bears have a slight advantage. The global volume of the asset increased by a marginal 3% while the dominance is at 45.99%.
At the time of writing, BTC was trading at $27,695.
Bitcoin witnessed a sharp rally from its recent low of $19,559 and made a high of $31,000. However, the bulls failed to manage their grip on the asset as it made small ‘Spinning Top’ candles near the high that indicated indecision in trend. BTC saw some profit booking and the prices dropped to $27,125. Currently, on a daily time frame, Bitcoin is consolidating and trying to take support at its 50-Day Moving Average. If it breaks the support, then it can further drop and test the next support which is at $25,000. Whereas to further rally, the asset needs to break and close above the long-held resistance of $32,500.
|Support 2||Support 1||Asset||Resistance 1||Resistance 2.|