The falling bitcoin (BTC) price just doesn’t know when to stop. The downward momentum is strong and has already caused the price to depreciate by more than 17% since the beginning of this month. And compared to the current all-time high (ATH) of BTC, the picture is of course even more dramatic. Where is a possible bottom?
Bitcoin price could drop to $28k
Using technical analysis, analysts and traders can estimate where the price may find support or resistance, and also to what extent the price may rise or fall. Such levels are determined, among other things, on the basis of historical price data and technical patterns. Important to remember here is that such price levels and patterns certainly do not offer any guarantee.
The well-known trader Peter Brandt already said on May 1 that he expected the bitcoin price to fall a lot further. At that time, bitcoin was trading at a price of $37,600 after it dropped below a rising trend channel. The technical target for a breakout at the bottom of this pattern was $28,000 at that time, according to Brandt.
The completion of a bear channel typically results in a decline equal to the width of the channel, or in this case a hard test of 32,000 or so — my guess is 28,000
This does NOT make me a hater $BTC pic.twitter.com/tTtuALZvSt
— Peter Brandt (@PeterLBrandt) April 30, 2022
Important support for bitcoin
The target mentioned by Brandt corresponds to support in the $28,000-29,000 area. The previous two times (in January and June 2021) that bitcoin arrived here, the price was able to rise to a new ATH twice. Other analysts also see this as a possible botto. Of course, past performance is no guarantee for the future. Also, the global situation is very different now, with much more uncertainty among investors.
In the end, no one knows where the bottom will eventually be formed. Trader Nebraskangooner therefore calls the current situation “difficult times for knife catchers” and shares an important piece of advice:
Knife catchers sure are having a hard time. 🔪
I will always gladly be a couple percent late to a party rather than be too early over and over.
This is one thing I learned from my mentors that has saved me loads of money.
— Nebraskangooner (@Nebraskangooner) May 9, 2022