• Bitcoin price could continue trending lower as buyers refuse to enter the market.
  • The bearish target given by the governing technical pattern is at $29,026.
  • The bulls may find it difficult to reverse the period of underperformance as many obstacles may emerge.

Bitcoin price action has continued to weaken as BTC has dropped below a crucial level of support. The prevailing chart pattern projects another 16% drop for the leading cryptocurrency.

Bitcoin price awaits 16% nosedive

Bitcoin price has sliced below the lower boundary of the descending parallel channel on January 21, putting a 16% plunge toward $29,026 on the radar. 

The first line of defense for Bitcoin price is at the July 25 low at $33,851. Additional footholds may emerge for the bellwether cryptocurrency at $31,973 and $30,151, where the June 27 low and the June 26 low sit, respectively.

If Bitcoin price breaks below the aforementioned levels of support, BTC may eventually tag the bearish target given by the governing technical pattern at $29,026, which coincides with the 127.2% Fibonacci retracement level. 

Investors should note that if Bitcoin drops below the aforementioned pessimistic target, BTC may slide even lower to prices not seen since January 2021.

However, if buying pressure increases, Bitcoin price will face immediate resistance at the lower boundary of the prevailing chart pattern at $35,570.

An additional hurdle may emerge at the 78.6% Fibonacci retracement level, coinciding with the middle boundary of the descending parallel channel.

BTCUSDT

BTC/USDT 12-hour chart

A spike in buy orders may incentivize Bitcoin to tag the upper boundary of the prevailing chart pattern next at $40,878, where the 61.8% Fibonacci retracement and 21 twelve-hour Simple Moving Average (SMA) intersect.

Bigger aspirations will target an escape above the topside trend line of the descending parallel channel pattern, but multiple obstacles may appear, first at the 50% retracement level at $43,016, coinciding with the 50 twelve-hour SMA, then at the 38.2% Fibonacci retracement level at $45,154.

 

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: Assessing chances of one last bear market rally for 2022

Bitcoin Weekly Forecast: Assessing chances of one last bear market rally for 2022

Bitcoin price is in a good place to trigger another bear market rally from a high-time frame perspective. This development, combined with the optimistic outlook seen in on-chain metrics, further strengthens the possibility of a happy ending to 2022.

More Bitcoin News

Uniswap price could kick-start a 14% rally if it reclaims this level

Uniswap price could kick-start a 14% rally if it reclaims this level

Uniswap price has been following the broader market bullish cues over the last few days sustaining its rise from 48 hours ago. Although the sentiment seems to have shifted slightly, UNI holders can still book profits if the Decentralized Finance (DeFi) token climbs to this level.

More UniSwap news

ATOM price suggests bears are still in control for these reasons

ATOM price suggests bears are still in control for these reasons

Cosmos price is producing a countertrend rally after suffering a steep decline throughout the month. If market conditions persist, ATOM could wipe out newly established bullish positions. Key levels have been defined to gauge ATOM’s next potential move.

More Cosmos news

Cardano Price Prediction: A new yearly low before the bounce

Cardano Price Prediction: A new yearly low before the bounce

Cardano price has suffered a vicious downtrend move throughout November. Ss price consolidates, the technicals suggest a bounce occurs while on-chain metrics hint that investors are considering securing profits sooner than later.

More Cardano news

Bitcoin: Assessing chances of one last bear market rally for 2022

Bitcoin: Assessing chances of one last bear market rally for 2022

BTC is in a good place to trigger another bear market rally from a high-time frame perspective. This development, combined with the optimistic outlook seen in on-chain metrics, further strengthens the possibility of a happy ending to 2022.

Read full analysis

BTC

ETH

XRP