Bitcoin Price Prediction as BTC Fell Below $26K Before Rebounding Again

Pathik Bhattacharya
Pathik Bhattacharya
Published on May 13, 2023 10:22 AM

Bitcoin is predicted to sustain its current trend and fall aggressively to test the immediate support.

Bitcoin Price Prediction as BTC Fell Below $26K
Source: Unsplash

Bitcoin price prediction reveals previously a bearish stance as price action approached to make a Head & Shoulders pattern. On Friday, Bitcoin traded at its lowest level since mid-March as volatility, fueled by low liquidity, continued to plague cryptocurrency markets.

According to CoinMarketCap, bitcoin closed the day down 2.58% at 26,181.46 after briefly reaching a low of 25,833.34, the lowest level since March 17. There are several difficulties confronting crypto markets right present, including insufficient liquidity, a crackdown on the industry by US regulators, and macroeconomic concerns. 

Bitcoin has increased in value by roughly 60% this year, but prices have remained unpredictable, with insufficient liquidity amplifying price swings higher and lower. Let's see Bitcoin price prediction to look after further trends.

Bitcoin Price Prediction As Experts Show Green Flag for BTC 

According to Clara Medalie, Kaiko's head of research, there has been a "notable drop in market depth" for Bitcoin. According to the On-chain data firm, Kaiko reported the Ethereum-Bitcoin correlation is down almost 80% in just a week since November 2021.

The liquidity problem may worsen as Bloomberg reported that Jane Street and Jump Crypto, two of the largest crypto market makers, may withdraw from crypto trading in the United States as regulators continue to tighten down on the embryonic industry. 

The cryptocurrency sector is at odds with US authorities, accusing the SEC and the US government of failing to spell out clear guidelines.

Meanwhile, the Bitcoin network has been experiencing congestion in recent days, with Binance forced to briefly block Bitcoin withdrawals last week. Bitcoin transaction fees increased this week, and while they are decreasing, they remain high. The initial Bitcoin network was not intended to handle large volumes of transactions.

These macro events are affecting Bitcoin price prediction technically making the price swings. Let's look into the technical analysis of Bitcoin.

Bitcoin Price Prediction: Daily Chart

Bitcoin (BTC) is currently trading at $26,833.95 with a 24-hour trading volume of $13,755,438,800. This reflects a 1.80% gain in the previous 24 hours and a -8.62% decrease in the last seven days. Bitcoin has a market valuation of $519,826,343,226 with a circulating supply of 19 million BTC.

On the technical front, Bitcoin is trading below the 55-day Exponential Moving Average (EMA) and may continue to fall if the $26,000 support holds. The Relative Strength Index (RSI) has fallen further into negative territory, indicating that buyers are losing ground.

If the support at $26,000 holds, Bitcoin price prediction suggests a possible rebound towards $28,000. This is a vital level that must be maintained in order to avoid future losses. If this level is breached, BTC may fall to the 200-day EMA at $24,330 before finding substantial support. However, if prices return above the 55-day EMA, Bitcoin may retest the $29,000 barrier.

Margin traders are not becoming pessimistic despite Bitcoin's drop below $27,000 and the consequent liquidation of $100 million. 

bitcoin price chart

Source: TradingView


In conclusion, Bitcoin price prediction indicates Professional traders have kept their leveraged long positions and are bullish on Bitcoin's ability to rebound from its latest drop below $28,000. Technical research predicts that Bitcoin might break over $28,500, yet the digital currency would need to retake $27,000 for this scenario to become more feasible.

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