Bitcoin price analysis for today reveals BTC has been trading in a declining trendline. Bitcoin has declined by 12% from a high of $29,865 on May 6. The price has dropped to as low as $26,461.93 on some exchanges, indicating a 1.46% dip in the last 24 hours. Bitcoin formed a neckline of a head and shoulders pattern, which is considered to be a bearish signal. The critical support at $27,000 was breached during the correction, causing BTC to enter a form-long bearish trend, complimented by a 7% correction.
The liquidation of long BTC futures contracts was observed when the price declined below $27,000. Over $100 million worth of contracts were liquidated during the price decline. This indicates that traders opt to take profits rather than wait for a price recovery.
BTC/USD 1-day price chart: BTC falls below 55-day EMA
On the technical front, Bitcoin is trading below the 55-day Exponential Moving Average (EMA) and could continue to decline if the support at $26,000 fails. The Relative Strength Index (RSI) has dropped further into bearish territory, indicating buyers are losing strength.
Bitcoin price analysis points to a potential recovery toward $28,000 if the support at $26,000 holds. This is a critical level that must hold to avoid further losses. If this level fails, BTC could decline toward the 200-day EMA at $24,330 before finding meaningful support. However, should prices recover above the 55-day EMA, Bitcoin could potentially retest the $29,000 level.
Despite Bitcoin’s dive below $27,000 and the subsequent liquidation of $100 million, margin traders are not flipping bearish. This resilience can be attributed to several factors. Firstly, regulatory pressure in the United States has increased, with Bitcoin miner Marathon Digital receiving a subpoena from the SEC. This regulatory uncertainty adds complexity to the market but doesn’t necessarily deter margin traders from maintaining their positions.
BTC/USD Technical analysis on a 4-hour chart: BTC forms a falling wedge
The BTC/USD pair trades bearishly below the $27,200 level, although a bullish continuation pattern has formed. The 4-hour chart shows that Bitcoin has formed a falling wedge pattern, signaling an impending reversal if Bitcoin can break above the upper trendline of the wedge at $28,500.
Bitcoin is trading at $26,461.93 after breaking below the SMA50 and SMA200. If Bitcoin reclaims the key support level near $27,000, it could form an inverted head and shoulders pattern. This would signal a trend reversal upward, allowing Bitcoin to break out of the wedge pattern and test resistance at $28,500.
Bitcoin price analysis conclusion
Bitcoin price analysis for today reveals Professional traders have retained their leveraged long positions and are optimistic about BTC’s potential to recover from its recent dip below $28,000. Technical analysis suggests that a break above $28,500 could be in store for Bitcoin, although the digital asset will need to reclaim $27,000 for this scenario to become more likely.
While waiting for Bitcoin to move further, see our Price Predictions on XDC, Polkadot, and Curve
