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Bitcoin (BTC) Drop to $23,000 More Than Possible: Here's Why

Tue, 09/05/2023 - 13:08
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Arman Shirinyan
Bitcoin's current state leaves much to be desired, but we can go down even more from here
Bitcoin (BTC) Drop to $23,000 More Than Possible: Here's Why
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Bitcoin's current landscape is a mixed bag of possibilities. The asset's price is hovering around $25,737, creating a sense of uncertainty in the short term. However, the midterm outlook suggests a favorable risk-to-reward ratio, especially if the price can stabilize between $25.8K and $26.8K.

The market is not all sunshine and rainbows for Bitcoin. There is a looming downside risk, with price levels potentially dropping to the $23.8K-$24.8K range. This bearish trend is something investors should keep an eye on, as it could trigger a further decline.

Despite the bearish vibes, there are glimmers of hope. The RSI shows a bullish divergence, and market volatility is on the wane. These indicators often signal that the asset is bottoming out, setting the stage for a potential upward swing.

The key level to watch is $26.8K. If Bitcoin can hold this price point, it could break the downward trend and pave the way for a bullish phase. Investors might consider entering the market after a dip or once the asset solidifies its hold on the $26.8K level.

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According to market analysts, the midterm outlook for Bitcoin is promising, with a favorable risk-to-reward ratio. However, the short-term picture remains cloudy. The recommendation? Consider buying after a dip or if the asset can maintain a solid hold at $26.8K, as it could be the catalyst needed to break the bearish trend.

The market is at a crossroads. The bearish trend and potential downside risk are real, but so are the signs of a turnaround. Investors should tread carefully, keeping a close eye on key indicators and price levels. If Bitcoin can break through the $26.8K barrier, it could signal the start of a new bullish phase, offering a more secure investment opportunity.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.