Bull Market Still in Play? BTC Price Analysis Reveals the Truth

• Bitcoin’s price has recently crashed, losing nearly $5,000 in one day.
• The following analysis looks at the details behind the crash and how it affects the overall market’s trend.
• BTC has broken below the critical 200-day moving average around the $28K mark which is a vital trend indicator, and could point to a potential bearish shift.

Bitcoin Price Crash

Bitcoin’s price has recently crashed, losing nearly $5,000 in one day. This significant drop caused the price to break below the critical 200-day moving average around the $28K mark which is a vital trend indicator that could point to a potential bearish shift.

Technical Analysis

The daily chart shows that Bitcoin has been rejected from the $30K resistance level multiple times in recent months and this last rejection with help from 50-day moving average near have initiated a significant drop to downside. The $25K support currently holds the price, preventing it from dropping deeper but there is still a considerable probability for pullback to 200-day moving average and further continuation lower in coming weeks.

On 4-hour timeframe however, the decline looks more drastic as BTC easily broke through both 27,500 support level and 25K level with long wick. Market is currently in consolidation phase as 25K area prevents price from dropping lower successfully but RSI indicator recovers above oversold region but still below 50% threshold.

Momentum & Volume Indicators

Momentum indicators also suggest further downward movement as both MACD line and signal line are heading downwards while histogram values remain negative. Volume indicators provide no clear direction as Chaikin Money Flow remains underneath 0 while On Balance Volume shows no major change since breakout of 30k resistance level occurred earlier this month.

Conclusion

The current market structure suggests Bitcoin might be entering bearish territory although nothing can be confirmed until we get an eventual break below 25k support or recovery back above 28k resistance level with conclusive volume surge either way.

Potential Reversal?

Although it appears that Bitcoin may be entering bearish territory at this time, only an eventual break of either 25k support or recovery back above 28k resistance with conclusive volume surge will confirm this scenario definitively

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