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Bitcoin Breaks Channel at $27,700: More Dips Coming?

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Arslan is an expert live webinar speaker and derivatives analyst, specializing in cryptocurrencies, Forex, commodities, and indices. He holds an MBA in Finance and an MPhil in Behavioral Finance from the University of Gujrat (UOG), Pakistan. With many years of experience in cryptocurrency and Forex trading, Arslan currently focuses on cryptocurrency price predictions and forecasts. Arslan has previously worked with several brokerage firms’ Forex and cryptocurrency trading teams, managing client exposure risk. Arslan has worked at CAPEX.com and NatureForex.com, among others.
By Arslan Ali Butt
author
Arslan is an expert live webinar speaker and derivatives analyst, specializing in cryptocurrencies, Forex, commodities, and indices. He holds an MBA in Finance and an MPhil in Behavioral Finance from the University of Gujrat (UOG), Pakistan. With many years of experience in cryptocurrency and Forex trading, Arslan currently focuses on cryptocurrency price predictions and forecasts. Arslan has previously worked with several brokerage firms’ Forex and cryptocurrency trading teams, managing client exposure risk. Arslan has worked at CAPEX.com and NatureForex.com, among others.
on October 11, 2023 | 2 min
Updated on Oct 11, 2023
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  • Bitcoin trades at $27,123.88, witnessing a 1.73% dip over the last 24 hours.
  • Technical indicators like the RSI and MACD suggest a short-term bearish sentiment.
  • Chart patterns indicate a potential continuation of the downtrend, especially below $27,577.

As the world’s pioneering cryptocurrency, Bitcoin has always been in the spotlight, capturing the attention of traders and investors alike. However, recent events have amplified this attention. In a surprising twist, the BTC/USD pair broke its channel at $27,700, leaving the crypto community wondering about the future trajectory of this digital asset. With the current global economic climate and Bitcoin’s intrinsic factors, the question on everyone’s mind is clear:

Are we bracing for more dips in Bitcoin’s value? As we delve deeper into its technical outlook and global sentiment, we hope to shed some light on this pressing question.

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BTC/USD Price Chart
BTC/USD Price Chart – Source: Tradingview

Bitcoin Price Prediction: Technical Outlook

Bitcoin’s recent performance has left many traders and investors with bated breath, as the leading cryptocurrency displayed a noticeable dip. As of October 11, BTC was trading at $27,123.88 with a 24-hour trading volume hitting $11.24 billion. Despite this substantial volume, Bitcoin decreased by 1.73% within the same timeframe. Currently, the coin sits at the pinnacle of CoinMarketCap’s rankings, boasting a whopping market cap of over $529 billion. Its circulating supply remains at approximately 19.51 million coins against its predetermined maximum supply of 21 million coins.

 

Diving deeper into its technical performance, Bitcoin’s pivot point on the 4-hour chart stands at $27,920. Traders should be vigilant of resistance levels at $28,631, $29,308, and the stronger $30,031. On the downside, the coin finds support at $27,242, with further cushions at $26,520 and $25,842.

 

The technical indicators convey a story of caution. The Relative Strength Index (RSI) registers a value of 32. Traditionally, anything below 30 is deemed as oversold, suggesting that BTC is hovering near potential oversold conditions. The Moving Average Convergence Divergence (MACD), with a value of -73.68, remains below its signal line at -143.58. This suggests a potential downward momentum in the short term. Additionally, Bitcoin’s price currently sits below the 50-Day Exponential Moving Average (EMA) of $27,577, further cementing a short-term bearish sentiment.

 

Chart patterns reveal a downward channel breakout at $27,700. Alongside this, there is a noticeable bearish crossover with the 50 EMA, suggesting a continuation in selling if BTC remains below $27,577. A bearish engulfing pattern has also emerged, which traditionally indicates a potential downtrend.

In conclusion, Bitcoin’s immediate trend seems bearish as long as it remains below $27,577. In the short term, unless there’s significant positive momentum or news to push it, Bitcoin could potentially test lower supports.

 

Stay tuned for more updates!

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About Arslan Ali Butt
Arslan is an expert live webinar speaker and derivatives analyst, specializing in cryptocurrencies, Forex, commodities, and indices. He holds an MBA in Finance and an MPhil in Behavioral Finance from the University of Gujrat (UOG), Pakistan. With many years of experience in cryptocurrency and Forex trading, Arslan currently focuses on cryptocurrency price predictions and forecasts. Arslan has previously worked with several brokerage firms’ Forex and cryptocurrency trading teams, managing client exposure risk. Arslan has worked at CAPEX.com and NatureForex.com, among others.
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