Bitcoin has been going up in price since the start of 2023, but it has started to show signs of a possible reversal. It faced strong resistance at the $30K level and couldn’t break through. Moreover, it hasn’t been able to maintain support above the previous levels of around $26,500, which is not a good sign.
However, according to Altcoin Sherpa, Bitcoin may slip down to the $25k level. He discussed the current market situation and highlighted that Bitcoin and other cryptocurrencies are experiencing a significant decline in value.
He mentioned the importance of the 24K to 25K price range, which has shown significant confluence and resistance in the past. However, the recent price drop has breached this range, and he expects a test of the 25K area due to its confluence with the former swing high from August 2022.
He also noted that the 25K level aligns with the 200-day exponential moving average (EMA), further strengthening its importance. He also revealed a demand area of around 24.3K, which adds to the overall interest in the price range from 25.3K to 23.6K.
However, he also expects price to potentially bounce at these key areas, he emphasizes that a true low has not yet been established. Despite the current market situation, he maintains his belief in a bullish market structure for Bitcoin. He said that higher highs and higher lows are still being formed, indicating an overall upward trend.
He also cautioned that the current market conditions are challenging and recommended being cautious with altcoin bids. He also highlighted the possibility of more liquidity and interest in the price range from 25K to 23K.
Altcoin Sherpa said, “If Bitcoin goes down to 23K, then alts are going to take a bath. I would definitely be cautious with all coin bids. I would just put them lower.”
