The cryptocurrency market is facing turbulence as Bitcoin (BTC) takes a significant downturn, dropping nearly 10% in recent days. After an initial surge following President Donald Trump’s declaration of the US Crypto Strategic Reserves, Bitcoin’s price plummeted to $83K, erasing earlier gains and raising concerns about further declines. Crypto analyst Egrag Crypto now warns that Bitcoin could fall even lower, potentially reaching $73K by April 1st before any major recovery.
**Key Levels to Watch for Bitcoin’s Price**
Bitcoin’s recent price action has highlighted a potential bearish trend. Egrag Crypto points out the formation of a Bearish Engulfing Candle on the 3-day chart, which signals that the price could continue to move downward. This bearish pattern was confirmed when Bitcoin dropped below the $90K mark, breaking through a crucial support level.
According to the analysis, Bitcoin could first fall to $80.5K, testing this support level before heading toward a critical support zone at $73K. This $73K support is a key level as it aligns with a crucial blue channel, which may dictate Bitcoin’s next major move. If the price drops to this level, it will be crucial for Bitcoin to hold steady or bounce back from this zone.
**Technical Indicators Suggest Further Decline**
Several technical indicators suggest Bitcoin may face additional downside pressure in the near term. The Moving Average Convergence Divergence (MACD) remains in a bearish trend, signaling that the market sentiment could continue to favor sellers for now. As the MACD is a lagging indicator, it suggests that Bitcoin is still at risk of further declines before any potential bullish recovery takes place.
The Bearish Engulfing Candle pattern on the 3-day chart indicates that Bitcoin’s downward momentum could persist, causing further price drops in the coming days. As it continues to face resistance and weak buying pressure, Bitcoin may struggle to regain the $90K support level, further validating concerns about its near-term prospects.
**Oversold Conditions and a Possible Rebound**
Despite the bearish technical signals, there are some indications that Bitcoin could soon hit a point of oversold conditions, which might lead to a rebound. The Relative Strength Index (RSI), a key indicator of whether an asset is overbought or oversold, is approaching levels that historically have indicated a reversal. When an asset reaches oversold territory, it often becomes an attractive entry point for buyers, which could increase the chances of a short-term recovery.
Historically, Bitcoin has experienced temporary pullbacks during major uptrends, only to recover and surge to new highs. This pattern suggests that a dip to $73K might not signal a long-term bearish trend but could instead act as an accumulation phase, where investors load up on Bitcoin at discounted prices before the next major move.
**The Importance of the Blue Channel Support**
One of the most critical aspects of this analysis is the blue channel, which Egrag Crypto highlights as a crucial factor in determining Bitcoin’s next major move. The blue channel represents a support level that has historically been significant in defining Bitcoin’s trend direction. If Bitcoin can hold above this level, it could lay the foundation for a strong recovery, setting the stage for the next phase of the bull run.
However, if Bitcoin falls below this support level, it could signify a deeper correction or a prolonged bearish phase. In that case, the $73K support would come into play as the next key level for buyers to step in.
**Conclusion**
Bitcoin’s recent price action has raised concerns about a potential deeper correction, with the possibility of falling to $73K before any major recovery. While technical indicators suggest more downside in the short term, the RSI indicates that Bitcoin is nearing oversold conditions, potentially paving the way for a rebound. Investors will need to watch key levels like $80.5K and $73K closely to gauge whether Bitcoin can hold its ground or if further declines are on the horizon. As always, market conditions remain volatile, and Bitcoin’s next moves will heavily depend on broader market sentiment and investor behavior.
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