BTC’s Price Breaks Below $29K, Will It Continue to Drop?

• Michael Pizzino predicted that BTC may recover quickly from its latest 24-hour drop.
• According to the trader, BTC is resting on a support level that needs to hold in order for the recovery to take place.
• BTC may continue to fall in the coming few days if it fails to close a daily candle above $29K within the next 48 hours.

The cryptocurrency trader Michael Pizzino predicted that Bitcoin (BTC) may recover quickly from its 24-hour loss. In the post, he shared that the market leader is resting on a key support level, which he believes needs to hold in order for a swift recovery to take place. Furthermore, he noted that $29K will be a key level to watch in the next few days.

On BTC’s daily chart, a short-term bullish falling wedge pattern and a medium-term bearish rising wedge pattern have taken shape. Over the past week, BTC’s price made several attempts to breach the confines of the bullish chart formation and ascend beyond the $30K mark. Despite these efforts, bears effectively curtailed the price ascent and hindered a breakout.

The most recent endeavor to overcome this chart pattern occurred on Monday, but it ended in failure. The rejection at the upper boundary of the chart pattern prompted a steep decline in BTC’s price, leading to a loss of support from the 9, 20, and 50 Exponential Moving Average (EMA) lines on its daily chart.

The descent in BTC’s price could extend into the upcoming week, given the shift in momentum that favors sellers, as indicated by technical indicators. At press time, the 9-day EMA line was situated below the 20-day EMA line, and both of these indicators were positioned beneath the 50-day EMA line.

This configuration implied that BTC had entered a short-term and medium-term downtrend, suggesting a probable continuation of its price decline. If this bearish scenario unfolds, BTC might confront the lower boundary of the medium-term rising wedge pattern, located around $28,215, in the coming week.

A breach beneath this level could pave the way for a drop to $27.5K in the subsequent week. However, should the downward momentum persist, there is a possibility that the cryptocurrency’s price could potentially dip to $26,915 by the end of the month.

It is important to note that this bearish outlook would be negated if BTC achieves a daily candle close above the $29K threshold. In such a scenario, the cryptocurrency’s price would likely make another attempt to breach the $30K barrier.

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