• Bitcoin’s price has been dropping recently after failing to break through the key $30K resistance level.
• The 50-day and 200-day moving average have both been broken to the downside.
• A bearish breakout from the current channel and $25K support level could lead to a drop to $23K.
Bitcoin Price Analysis
Bitcoin’s price has continued trending downward for several weeks, making lower highs and lows. Even so, hope remains that the potential for a bullish rally is not yet over.
On the daily chart, the price has been dropping recently after failing to break through the key $30K resistance level. The 50-day moving average, located around the $28K mark, has also been broken to the downside and would act as resistance until the price trades below it. $25K seems the most likely target in the short term, as it is a strong support level that the bulls could count on. The 200-day moving average, trending around the $23K level, could also be tested if $25K were to break down.
Looking at the 4-hour chart, the price has been gradually declining forming a large bullish flag below