- Altcoin Sherpa predicts that Bitcoin’s price will soon drop to $25K based on various technical indicators and past support/resistance levels.
- Bitcoin’s weekly performance has suffered a 1.73% decline, and the cryptocurrency is currently on a trajectory toward a significant support level of $26,800.
- Technical indicators, including the RSI, confirm the bearish trend in BTC’s price, with the expectation that its price will continue to decline over the next day or two.
Altcoin Sherpa, a renowned cryptocurrency trader, and analyst, took to Twitter this morning to share his latest price prediction for Bitcoin (BTC). According to his tweet, the expert anticipates that the value of the leading cryptocurrency will experience a significant drop to $25K soon. This projection is in line with the ongoing fluctuations in the crypto market and could significantly impact the industry as a whole. As traders and investors continue to monitor Bitcoin’s movements, only time will tell if Altcoin Sherpa’s forecast comes to fruition.
$25K BTC Target Based on Confluence
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In a tweet, the trader outlined his thought process behind setting the price target. Altcoin Sherpa pointed out that the $25K level holds significant weight due to several factors, including its correlation with the 200-day EMA line, the 0.382 fib level, and its previous use as both a support and resistance level, having been tested twice before.
As of the time of writing, Bitcoin was trading above $25,000 at a value of $27,616.28, according to CoinMarketCap. However, this followed a decline of 1.19% within the past 24 hours. As a result, Bitcoin’s weekly performance also suffered and experienced a 1.73% decline over the previous seven days.
BTC appears to be on a trajectory toward the next significant support level of $26,800 following a bearish dip below the 9-day and 20-day EMA lines. The breach of these two technical indicators was preceded by the activation of a bearish flag, with the 9-day EMA line falling below the longer 20-day EMA line over the past four days.
Bearish signals abound for Bitcoin’s price
Several technical indicators, including the 9-day and 20-day EMA lines and the daily RSI, confirmed the bearish trend in BTC’s price. The RSI was particularly noteworthy, as it traded below the RSI SMA line at the time of writing. These signals all pointed towards a bearish cycle for BTC, with the expectation that its price would continue to decline over the next day or two.
If the prediction of a downward trend for BTC is proven correct within the next few days, the cryptocurrency’s value will fall to the support level of $26,800 mentioned earlier. If this support level proves ineffective, BTC’s next potential downside target will be approximately $25.2K. Conversely, if BTC can maintain a closing price above $26,800 over the next 48 hours, it will likely move upward toward the 9-day EMA line.