Bitcoin (BTC) maintained a position above $26,000 as the weekly close approached on August 20, amid growing concerns about the cryptocurrency’s price. The market experienced an 11% decline over the past seven days, causing alarm among market observers. Experts predicted that the price of Bitcoin may further decrease in the coming period, but some also saw this as an opportunity for potential buyers.
Keith Alan, co-founder of monitoring resource Material Indicators, expressed his cautious optimism about the future of Bitcoin. He believed that the support level at $25,000 would eventually break down, leading to a retest of the 2017 Bull Market Top support at just under $20,000. However, Alan did not expect this decline to happen in a straight line. Instead, he anticipated a potential double bottom formation at $25,000, which could serve as a foundation for a future price rally. If this setup presents itself, Alan suggested that Bitcoin could reach a range of $28,000 to $29,000.
Alan also mentioned the possibility of Bitcoin rebounding to the 100-week simple moving average (SMA) at $31,368. However, he believed that such a scenario would only exacerbate the losses incurred during that week. In the event of a retest at $25,000, Alan suggested that Bitcoin could experience a series of lower lows, with $24,749 and $19,567 being the potential support levels. Breaking below the latter level could pave the way for a generational buying opportunity.
Other experts shared a similar consensus that if Bitcoin fails to find support at $25,000, the price could target $20,000. However, popular trader Skew mentioned that a deep sweep below $20,000 could provide a swing long opportunity. Skew also anticipated a potential bounce around the weekly close, with a target of $28,500 if the buyers step up their pressure.
To further analyze potential support levels, analytics platform Whalemap identified several points of whale buying volume from the past. It noted that significant on-chain volume remained at $23,200 and $21,000. In the event of further decline, Whalemap identified $19,200 and $16,600 as additional points of interest. However, previous whale support at $28,250 and $26,950 failed to hold the market as it descended.
As the price of Bitcoin continues to fluctuate, it is important to note that this article does not provide investment advice. Every investment carries its own risks, and readers should conduct thorough research before making any investment decisions.
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