Bitcoin (BTC) has experienced a negative reaction following the SEC’s continued crackdown on the crypto industry. The regulatory body recently filed a complaint against the largest exchange in the industry, Binance, contributing to Bitcoin’s decline.
However, there may be a glimmer of hope for the cryptocurrency, as it has managed to recover the $26,000 level. This is an important threshold for Bitcoin, as it must maintain this level if it hopes to continue its uptrend.
Despite visiting lower lows of $25,300, Bitcoin has managed to bounce back 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 BTC’s price has dropped to this level, it has often bounced back up. This suggests bullish sentiment in the market, as traders continue to see value in buying Bitcoin at this price point.
Expert Discuss Potential Bottoms At $24,000 And $23,000
However, renowned crypto analyst, Altcoin Sherpa, has weighed in on the current state of the Bitcoin market, sharing insights into where the bottom might be.
According to Altcoin Sherpa, Bitcoin has been experiencing a lot of support at the $25,000 level, holding up well despite recent market fluctuations. However, he believes there could be even lower levels of liquidity in the market, which could impact Bitcoin’s price shortly.
Altcoin Sherpa points out interesting support areas at the $23,000 and $24,000 levels, potentially serving as a bottom for Bitcoin. However, he advises investors to be patient and wait for the market to find some consolidation before making any investment decisions.
The analyst notes that the ‘bottom’ should take time, and investors should look for signs of consolidation before making any moves. He also suggests that it may not be the right time to buy alts or BTC at the current level and that a more cautious approach may be warranted.
Bitcoin Faces Critical Test
Following the same line, crypto analyst Justin Bennet said the $26,500 level had become resistance after yesterday’s breakdown. The key support area for the week ahead is $25,200, a level that served as resistance for BTC. Bennet expects this to be a significant test for the market, with the potential for ranging price action between $25,200 and $26,500.
Bennet 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 BTC reclaims the $25,200 level, traders can consider longing BTC within the range. Alternatively, an immediate retest of $26,500 could offer a favorable short opportunity with targets of $25,200 and $24,000.
Furthermore, Bennet notes that the path for BTC remains uncertain, but a reclaim of $26,500 would confirm a deviation and expose $27,500.
Featured image from iStock, chart from TradingView.com