Bitcoin has been rising in price since early 2023, but it is starting to show signs of a potential reversal. It encountered strong resistance at the $30,000 level and failed to break through. Moreover, it has failed to hold support above previous levels around USD 26,500, which is not a good sign.
However, according to Altcoin Sherpa, Bitcoin could slide towards the $25,000 level. He discussed the current market situation and emphasized that Bitcoin and other cryptocurrencies are experiencing a significant drop 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 crossed this range and he expects a test of the 25K area due to the confluence with the former swing high from August 2022.
He also noted that the 25K level corresponds to the 200-day exponential moving average (EMA), further cementing its importance. He also revealed a demand area of around 24.3K, adding to the overall interest in the 25.3K to 23.6K price range.
However, he also expects the price to potentially bounce in these key areas. He emphasizes that a real low point has not yet been determined. Despite the current market situation, he continues to believe in a bullish market structure for Bitcoin. He said higher highs and higher lows are still forming, indicating an overall uptrend.
He also warned that current market conditions are challenging and recommended caution with altcoin bids. He also highlighted the possibility of increased liquidity and interest in the 25K to 23K price range.
Altcoin Sherpa said, “If Bitcoin drops to 23K then alts are going to take a bath. I would definitely be careful with any coin bids. I would just lower them.”