Bitcoin fluctuates at $ 27,000 because a further decline seems to be underway (BTC price analysis)

Bitcoin fluctuates at $ 27,000 because a further decline seems to be underway (BTC price analysis)

The Bitcoin price has continued to decrease in the last week, and there could be more. However, the declining dynamics are much lower than expected and there are several levels of support that the market can rely on.

technical analysis

from: edris

The daily chart

If you look at the daily time frame, the price has been declining since it was rejected from the resistance level of $ 30,000 in April, and it also fell below the sliding 50-day average, which is around $ 29,000 mark.

judge the latest candlestick forms, an interest bull-retreat to the open-ended average could be likely. Nevertheless, the price could still fall towards the static level of support of $ 25,000 before increasing again.

Tradingview

The 4-hour diagram

The 4-hour chart shows that BTC has fallen below the small support brand of $ 27,500 and will probably test the range of $ 25,000 in the coming days. However, since the RSI rises again over the oversold area and there is a clear bullish divergence between the two recent deep stalls, a renewed test of the $ 27,500 brand could be expected at short notice, which now acts as resistance.

All in all, the market structure in this time frame is clearly bearish until the price over the resistance mark of $ 30,000 increases.

Tradingview

The Bitcoin network has achieved an all-time high in activity with a new record of 682,000 daily transactions. This represents a significant increase compared to the 250,000 daily transactions at the beginning of 2023. The main reason for this increase is the increasing popularity of ordinal inscriptions that are mainly used to create digital assets.

Unfortunately, the increase in Bitcoin activities and the growing popularity of BRC-20-tokens have negative effects. The Bitcoin network is crowded, which means that users have to pay higher transaction fees. This situation affects all Bitcoin participants, including everyday users and miners. Therefore, special caution is required when trading on the BTC markets, since the market may be exposed to high volatility.

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