Bitcoin’s price decline below $28,000 and the potential retest of the $27,000 support level.
The Bitcoin price continues to decline below $28,000 following the excitement surrounding the approval and live trading of Ethereum futures exchange-traded funds (ETFs) in the US. Despite expectations of a surge to $30,000, profit-taking activities have led to a correction. It is likely that BTC will extend its downtrend and retest the $27,000 support level, providing an opportunity for bulls to gather liquidity and rebuild the uptrend.
The upcoming halving process in April 2024 and its potential impact on Bitcoin’s price.
Bitcoin’s upcoming halving process in April 2024, which will reduce miner rewards from 6.25 to 3.125 BTC, is expected to impact its price. Historical data suggests that Bitcoin tends to rally after halving events due to changes in supply and demand dynamics. Investors often buy before the halving to take advantage of the subsequent price increase. Traders and analysts encourage investors to make the most of any downside before the halving to benefit from the upside afterward.
Traders’ perspectives on Bitcoin’s short-term outlook, including the possibility of reaching the $27,000 level.
Despite the pullback below $28,000, some traders remain optimistic about Bitcoin’s short-term prospects. Altcoin Sherpa, an anonymous trader and analyst, believes that Bitcoin may reach the $27,000 level again, which could attract sidelined investors who missed the previous price surge.
The performance of Bitcoin in relation to key moving averages, such as the 21-week EMA, the 100-week EMA, and the 200-week EMA, will be crucial in determining its future direction. Traders should closely monitor Bitcoin’s reaction to the $27,000 support level, as it will likely influence whether the price rebounds towards $30,000 or retests lower support levels at $25,645 or even $20,000, which some analysts consider as the start of the next bull run.