Bitcoin Volatile at $27K as Another Decline (BTC Price Analysis)

The price of bitcoin has been falling steadily over the past week, and it may still fall further. However, the bearish momentum is much less than expected, and there are several support levels available for the market to rely on.

technical analysis

By: edris

the daily chart

Looking at the daily time frame, the price declined since its rejection from the $30K resistance level in April, and it even broke below the 50-day moving average, which is located near the $29K mark.

Looking at the recent candlestick formations, a bullish move back to the broken moving averages is likely. Nevertheless, the price could still slide lower towards the $25K stable support before correcting higher.

4 hour chart

The 4-hours chart shows that BTC broke below the $27,500 minor support and it is likely to test the $25K region in the coming days. However, with the RSI rising above the oversold zone and showing a clear bullish divergence between the two recent lows, a retest of the $27,500 level, which is now acting as a resistance, can be expected in the near term .

Nevertheless, all things considered, the market structure is clearly bearish on this time frame unless the price moves above the $30K resistance.

Bitcoin network activity has reached an all-time high, with a new record of 682,000 daily transactions. This marks a significant increase from the 250,000 daily transactions seen in early 2023. The primary reason for this boom is the growing popularity of perpetual fiat, which is primarily used to create digital assets.

Unfortunately, the surge in bitcoin activity and the growing popularity of the BRC-20 token has had a negative impact on the market. The bitcoin network has become congested, resulting in users paying high transaction fees. This situation is affecting all bitcoin participants, including everyday users and miners. As a result, trading in the BTC markets requires extra caution, as the market can experience high volatility.