Bitcoin (BTC) price has been on a rollercoaster ride in the past few weeks. After hitting an all-time high of $64,000 in April 2021, the digital currency has seen significant fluctuations in its value. Last week, BTC gained over 28%, bringing renewed optimism among traders. However, this bullish momentum came to a halt when the price faced a strong resistance at $29,000, and BTC failed to break above it. As a result, traders are now predicting another leg lower for BTC, with the support level of $25,300 being the next target.
Bitcoin Price Rejection at $29,000:
BTC’s price saw a strong rejection at $29,000 last week, which caused a drop in its value. This resistance level proved to be too strong for bulls to overcome, and BTC has been unable to trade back at that level since. Many traders were hoping that BTC would break above $30,000 and continue its upward momentum, but the rejection has dampened their expectations.
Next Week’s Price Prediction:
Looking ahead, traders predict that BTC’s price will continue to decline, with $25,300 being the next support level. This prediction is based on technical analysis, which suggests that BTC is currently in a bearish trend. Furthermore, the recent rejection at $29,000 has created a strong resistance level, which is likely to prevent any significant bullish movement in the short term.
Technical indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) support the bearish sentiment. The RSI is currently in oversold territory, which suggests that BTC is undervalued and could experience a bounce. However, the MACD shows that BTC’s momentum is still negative, indicating that the bearish trend may continue.
Bitcoin’s Long-Term Potential:
Despite the short-term bearish sentiment, many traders and investors believe in Bitcoin’s long-term potential. BTC has already shown its ability to rebound from significant drops and reach new all-time highs. Furthermore, institutional adoption of BTC as a store of value and payment method is increasing, which could lead to more demand and higher prices in the future.
Bitcoin’s recent rejection at $29,000 has dampened traders’ expectations for a continued bullish run. Technical indicators and bearish sentiment suggest that BTC’s price will continue to decline in the short term, with $25,300 being the next support level. However, BTC’s long-term potential remains strong, and investors should consider it as a long-term investment opportunity rather than focusing on short-term price movements.