Bitcoin Bull Run At Stake, BTC Price At Risk Of Dropping Below $25K

Bitcoin Bull Run At Stake, BTC Price At Risk Of Dropping Below $25K

Time Stamp: May 12, 2023 9:10 AM
Source Node: 2645799

After several warnings of a possible head and shoulder (H&S) formation on the Bitcoin higher time frame, the neck support finally caved in on Friday. According to the latest crypto price oracles, the Bitcoin price dropped as low as $26,188 on Friday, down approximately 4 percent in the past 24 hours. While the move was largely expected by most crypto traders, owing to increased bearish sentiments in the recent past, more than 84 percent of Bitcoin liquidations in the past 24 hours, about $50.94 million, were long traders.

Analyst’s Viewpoint

Respected Bitcoin analyst @ali_charts suggests short-term repercussions for bears. In his technical analysis, Ali notes that if Bitcoin bulls hold the $26k support, an upside towards $26.8k or $27.5k will be imminent. The analyst highlights the bullish divergence observed in the 4-hour RSI, despite the recent price decline.

However, Ali cautions that such a move could be invalidated if Bitcoin bulls fail to hold the support level around $26k, which could push the prices towards $25.2.

Alternative Bullish Perspective

Popular crypto analyst @DaanCrypto presents a bullish outlook based on historical patterns. He notes that Bitcoin price rallies up whenever it is preceded by seven days in red candlesticks, indicating a potential price reversal.

Resistance and Investor Confidence

Bitcoin bulls have faced strong resistance between $29k and $31k, leading to a temporary retreat to gather momentum for a breakthrough. Additionally, the ongoing global banking crisis, led by United States regional banks, has significantly increased investors’ confidence in Bitcoin and the self-custody of cryptocurrencies. As long as the bears don’t push toward all-time lows (ATL), the likelihood of a price reversal remains.

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