- 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 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.
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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.