Bitcoin price has been on a roller coaster ride for the past week, plunging from a peak of $30,397.55 on 18 April to a trough of $27,410.49 on 9 May. The cryptocurrency has been unable to break the $30,000 barrier, a significant hurdle for the bulls.
The latest bitcoin crash came after the US govt. sold 9.8k bitcoins worth $277 million. The data sparked panic among investors, who were in a good mood after US CPI data emerged better than expectations.
Bitcoin Price Analysis
Bitcoin is trading at $27,455, down 2.8% from yesterday’s peak and 20.01% from one year ago. The coin faces fierce resistance from the bears, trying to push it below the $27,000 support level. If this level is breached, bitcoin could tumble further toward the next support at $26,000.
Conversely, if Bitcoin can bounce back from the current level and reclaim the $28,000 mark, it could spark a short-term rally toward the $29,000 and $30,000 resistance levels. First, however, the coin would need to overcome the bearish sentiment and the technical indicators currently favoring the sellers. Let’s have a look at the chart below:
A bullish butterfly pattern is on its way. There is a huge amount of liquidity in the region of 26000-265000. A huge pump will happen in the market after grabbing that liquidity.
The short-term invalidation level is a 4H volume candle close above 27650.
The RSI is below 50, indicating a lack of momentum for the bulls. The MACD is also in negative territory, signaling a bearish trend. The 24h trading volume is $20.8 billion with a circulating supply of 19.4mn .
Conclusion
Bitcoin price has been lagging behind some of its peers in the crypto market. Ethereum price has soared to new highs, reaching $1,900.41 on 10 May. Litecoin has also been holding above $80, while XRP price hovers around $0.46.
Bitcoin price is still up more than 70% since the start of the year, but it has lost some of its dominance and appeal as other cryptocurrencies have gained more traction and innovation. As a result, Bitcoin will need to find a catalyst to reignite its bullish momentum and reclaim its status as the king of crypto.
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