Is $23,000 the end of the line for Bitcoin’s rollercoaster ride?

Bitcoin (BTC) has faced a negative impact due to the SEC’s crackdown on the crypto industry, resulting in a decline. The SEC filed a complaint against Binance, the largest exchange in the industry, which contributed to Bitcoin’s decline. However, there is still hope for the cryptocurrency as it has managed to recover the $26,000 level, which is an essential threshold for Bitcoin to maintain if it hopes to continue its uptrend. Though Bitcoin has fallen to lower lows of $25,300, it has managed to bounce back from the 200-day Moving Average (MA), which is historically a strong support level for Bitcoin. This suggests bullish sentiment in the market, as traders see value in buying Bitcoin at this price point.

Renowned crypto analyst, Altcoin Sherpa, has weighed in on the current state of the Bitcoin market, sharing insights into where the bottom might be. According to Altcoin Sherpa, Bitcoin has been experiencing a lot of support at the $25,000 level, holding up well despite recent market fluctuations. However, he believes there could be even lower levels of liquidity in the market, which could impact Bitcoin’s price shortly. Altcoin Sherpa points out interesting support areas at the $23,000 and $24,000 levels, potentially serving as a bottom for Bitcoin. However, he advises investors to wait for the market to find some consolidation before making any investment decisions.

Crypto analyst Justin Bennet said the $26,500 level had become resistance after yesterday’s breakdown. The key support area for the week ahead is $25,200, a level that served as resistance for Bitcoin. Bennet expects this to be a significant test for the market, with the potential for ranging price action between $25,200 and $26,500. Bennet advises traders to wait for a confirmed deviation below the $25,200 support level, with channel support near $24,300 serving as a potential technical catalyst. If Bitcoin reclaims the $25,200 level, traders can consider longing BTC within the range. Alternatively, an immediate retest of $26,500 could offer a favorable short opportunity with targets of $25,200 and $24,000.

The path for Bitcoin remains uncertain, but a reclaim of $26,500 would confirm a deviation and expose $27,500. The featured image is from iStock, and the chart is from TradingView.com.