Bitcoin (BTC) experienced a significant drop in the past 24 hours, breaking a critical support level at approximately $27,285. This drop resulted in substantial long liquidations and has raised concerns about the future direction of the cryptocurrency market. Despite Bitcoin’s market dominance, it is navigating uncertain territory. Moreover, the looming “death cross” between the 50 and 200 Moving Averages (MA) on the hourly chart suggests that Bitcoin’s price may face further downward pressure in the days ahead.
Why to Short the Bitcoin Price Now?
According to Michaël van de Poppe, a prominent crypto strategist based in Amsterdam, Netherlands, Bitcoin’s recent performance has been lackluster and appears poised for a short-term correction. This correction coincides with high-impact news from the United States, adding to the market’s uncertainty.
The United States Bureau of Labor Statistics is set to release the Consumer Price Index (CPI) data, and the Department of Labor will announce unemployment claims data. Traders eagerly await the Federal Reserve’s release of the Federal Open Market Committee (FOMC) report, which will provide valuable insights into the economic and financial conditions.
Bitcoin Price Action
In light of the current weakness in Bitcoin’s short-term outlook, Poppe has established a BTC price target of approximately $26,800 for the coming days. He anticipates entering a buy bid at around $26.7k, with a stop loss set at $26,063 and a take profit level of approximately $28,867. Poppe expresses confidence that the critical support level at around $25.1k will hold in the event of a sudden capitulation, given the mid-range support at around $25.7k.
Bitcoin’s recent price movement and the impending economic data releases from the United States have created a challenging environment for traders. Michaël van de Poppe’s analysis suggests a short-term correction, with a specific price target and strategic entry and exit points. However, the cryptocurrency market remains highly dynamic, and investors should exercise caution and stay informed about the latest developments.