Bitcoin (BTC) Price Crash: Is More Pain On The Horizon? Elite Crypto Analyst Weighs In

Bitcoin (BTC) is showing signs of potential reversal after recently hitting the lower band of its descending channel.

Bitcoin (BTC) price action is showing signs of potential reversal after hitting the lower band of its descending channel.

According to Sjuul from AltCryptoGems, the crypto dropped to a critical support level after a dip last Friday, sparking interest among traders.

However, the analysis maintains that BTC is still in a downtrend on most time frames.

Bitcoin price trades at a crucial support level after a recent dip, sparking interest among traders.

After hitting the lower band of its descending channel, Bitcoin price seems to be up for grabs as it trades at a crucial support level.

A critical level of support has now been reached by Bitcoin (BTC) as it continues to trade within a descending channel. After a period of relative calm, the price of the flagship digital asset dropped sharply on Friday. This occurrence has sparked interest among traders.

According to data from CoinGecko, BTC is currently trading at $54,935.30, showing a slight 0.98% increase in the last day and a decrease of 4.94% over the past week.

Bitcoin trades at a crucial support level

The analysis, shared by Sjuul on X, highlights the importance of Bitcoin’s current trading range. He noted that the digital asset has approached the lower band of a descending channel.

Moreover, this has also coincided with a key support level that Bitcoin has respected for the past six months. The analyst suggests that this dip presented a buying opportunity, but with caution, as the market remains in a downtrend.

Sjuul pointed out that the $50-52K range was earlier identified as a critical support area. This zone has now been tagged, and while optimism remains, the suggestion is to move stop losses to break even.

“We should be bullish at support levels and bearish at resistance,” he emphasized, urging traders to protect their positions in a volatile market.

Downtrend continues, but reversal may be possible

Despite the bearish sentiment, Sjuul highlights that Bitcoin is now trading in a potential reversal zone. The fact that the price wicked exactly on the lower band of the descending channel adds further interest in this level.

However, he notes that BTC is still in a downtrend on most time frames, and there are still challenges ahead before any sustained upward movement can be confirmed.

The analysis also points out several key resistance levels that must be overcome. These include the one-hour trend, which recently acted as resistance. It is also a former support level that could now function as a barrier to the upside.

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