breakout, Bitcoin prices hold off the downfall above $25K. The sudden drop in BTC price puts multiple holders and whales under the stress of unrealized loss.
MicroStrategy, for example, currently holds 152,800 $BTC at an average of $29672. With the current price at $26,111, the unrealized loss amounts to approximately $85,564,800.
Nevertheless, smart money continues to flow as Bitcoin’s falling prices halt slightly above the $25K support zone.
Why $25K Support Zone is Critical For Bitcoin?
As the crypto market struggles to recover from its worst week after the FTX fiasco, Bitcoin price halts at $26K. However, the crucial support zone at $25K remains the next bullish fortress as per the Bitcoin price action.
Providing resistance multiple times and supporting the previous correction in BTC price before this fall makes $25K a high-action spot.
Similar to the $25K support zone, Bitcoin’s 49% market dominance level remains a crucial spot. In his recent tweet, Benjamin Cowen, CEO/Founder of ITC_Crypto, marks the importance of the 49% level.
Benjamin states that in June, many people said that BTC dominance would never break 49% and that alt season was about to begin. However, those same people criticize BTC dominance because it has returned to 49%.
Bitcoin Technical Analysis
Despite the support trendline breakout, Bitcoin prices find support at $26K as the trading volume subsides, indicating a fall in selling pressure. Moreover, BTC price action projects a potential double-bottom reversal from the $25K support zone.
Currently trading at $26,058, Bitcoin price action displays multiple lower price rejections and increases the reversal potential. However, the intraday loss of 0.57% and the consolidation within the 4-hour chart will determine the future trend.
Will Bitcoin Manage A Reversal?
For the 2023 bull run to survive, Bitcoin price must avoid a downfall below the $25K mark. A reversal at this level is extremely necessary to improve the market sentiment, and the lower price rejections display a bullish action in play.
If the BTC price reverses in the coming week, the possibility of retest will drive a selling force at the broken trendline. Therefore, short-term buyers can find this as a profit booking spot.
Conversely, if the Bitcoin market value falls below the $25K support level, the downtrend will crash the BTC price, potentially to $20K.
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