Bitcoin price could easily slide 7%, but will BTC bulls sit by idly?
|- Bitcoin price has slipped below the ascending parallel channel setup, denoting a breakout.
- BTC could retest the four-hour EMA and SMA at $22,861 and $23,199, respectively, before sinking to $21,286.
- Invalidation of the bullish thesis would involve a flip of the four-hour SMA at $23,199 into a support floor.
Bitcoin (BTC) price shows a clear sign of consolidation below the long-term consolidation structure. While the bearish outlook has not yet been confirmed, bulls should not rest, knowing that another crash could occur soon.
Also Read: Shiba Inu price could crash to December 2022 lows if it loses this level
Bitcoin price continues to tighten
Bitcoin price has been in a rangebound movement since the Silvergate crisis-led crash on March 2. This sudden sell-off has knocked BTC below the ascending parallel structure seen in the chart below.
While a breakdown of this structure forecasts waning bullishness and even a bearish move, more confirmation is required. In the meantime, market participants can expect Bitcoin price to trigger a recovery rally that tags the four-hour Exponential and Simple Moving Averages (EMA, SMA) at $22,861 and $23,199, respectively.
A rejection here will be the first step for bears to seize control. A swift spike in selling pressure could collapse Bitcoin price to the next key support level at $21,625. In some cases, this move could wick down to the 200-day EMA support at $21,268.
Bitcoin price could tag the 200-day SMA at $19,716 in a worst-case scenario.
BTC/USDT 1-day chart
On the other hand, if the recovery bounce causes Bitcoin price to produce a daily candlestick close above the $23,199 hurdle into a support floor, it would invalidate the bearish thesis. However, investors should wait for a secondary confirmation, which will arrive after BTC flips the $25,000 psychological level into a foothold.
In such a case, Bitcoin price could eye the next major hurdle at $28,000.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.