31 May 2023 12:52, UTC
Reading time: ~2 m
The total crypto market cap dropped 1.89% over the past 24 hours according to CoinMarketCap – taking the collective total to around $1.14 trillion. During this time period, Bitcoin (BTC) had also fallen victim to the market-wide selloff, as its price dropped by 2.35%. As a result, the market leader was changing hands at $27,148.11.
Daily chart for BTC/USDT (Source: TradingView)
The crypto’s price had dropped below the 9-day and 20-day EMA lines earlier in today’s trading session, and continued to trade below the two technical indicators at press time. This drop came after BTC’s price faced rejection from the key resistance level at $28,750 on Monday.
Despite the drop in BTC’s price over the last 3 days, technical indicators still suggested that the market leader’s price would enter into a bullish move in the coming week. A notable bullish technical flag that was on the verge of being triggered was the 9-day EMA line which was looking to cross above the longer 20-day EMA line.
Furthermore, BTC’s price recently printed a higher low, confirming that it was still in a long-term bullish trend. On 25 May 2023, BTC had closed the day’s trading session off at $26,473.79. As a result, the crypto was able to remain in a long-term positive price channel, which suggested that BTC would once again rise in the coming few days.
This bullish thesis will be validated if BTC’s price closes the next 48 hours above the positive trend line present on its daily chart. Should this happen, BTC will look to flip the aforementioned $28,750 back into support before targeting the key $30K mark in the next few days.
On the other hand, BTC closing the next 48 hours below the positive trend line and not recovering within the 24 hours after the drop will result in BTC’s price falling to the next crucial support level. Should this happen, BTC will likely decline towards just above $26.1K in the days that follow.
Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.
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