Crash towards $26,000, what’s next for Bitcoin? (BTC Technical Analysis)

After weeks of consolidation, Bitcoin was unable to increase and eventually fell. This resulted in a significant liquidation phase and a drop below the critical support level of $30,000.

technical analysis

technical analysis Shayan

daily chart

The market has now tapped dormant liquidity below the critical demand area of ​​around $30,000, but there are no signs of a reversal yet. Also, the next support level for Bitcoin is $24K-$25K.

On the other hand, the RSI indicator has entered oversold territory and is about to break through. This could signal a near-term reversal to the previously broken $30K-$32K level. On the other hand, bearishness has full strength and a collapse into the $24K-$25K demand zone is still possible.

Source: TradingView

4 hour chart

A sustainable rally always has a fix. After a massive bearish at $69,000, Bitcoin continued to build a corrective flag pattern and recently collapsed below its lower trendline, causing a massive waterfall in the market. The price finally broke its 2021 lows and hit a regional low of $26,000.

The last significant support of $37,000 is now the main resistance level for the price, with the next support likely to be the $24,000-$25,000 demand area. Following the short-term consolidation and coverage phase, uneven price action appears more likely in the coming weeks.

Source: TradingView

On-chain analytics

by Shayan

Bitcoin price recently plummeted to $26,000. The short-term holder SOPR plunged to a several-month low, causing a serious crash as the chart shows.

The same thing happened in July 2021, when Bitcoin plummeted to $29,000 after the eventual capitulation before rebounding to new highs. On the other hand, the STH-SOPR indicator showed a lower level than the present in the surrender phase in May 2021. As a result, markets are in a state of panic and uncertainty, which means the pain may not be over yet.

Source: Cryptoquant
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