Bitcoin has established support near $27,750 in recent trading sessions, piquing the interest of traders and investors over the cryptocurrency’s future course. Many people are unsure whether this support level will hold after suffering a bearish trend or whether further drops are imminent.
As of the time of publication, Bitcoin was circling around $28,000 after testing key support at $27,800 last evening (EST). A price above $25,000 refers to the long-term trend continuing to be firmly in favor of Bitcoin bulls. To prevent a larger decline to $25,000 in the near future, it is crucial to hold the $27,800 level, as also suggested by analyst XO.
The trend-setting price level, according to technical analyst Michaël van de Poppe, founder of Eight Global, is crossing above $28,400 in the shorter time frame. “Breaking through $28.4K, and we could be back to $30K in a few days. Not breaking and folding in coming days, $25K next. Big volatility on the horizon,” the analyst warns.
The business analytics platform MicroStrategy has confirmed its commitment to its Bitcoin investing plan after reporting its first quarterly profit since 2020. The Michael Saylor-founded business generated a $94 million profit in the first quarter of 2023, largely as a result of a one-time income tax windfall of $453.2 million.
The current weakness that Bitcoin displays, with a price of approximately $28,000, may, however, be a sign that another sweep of the lows is required to create fresh upward momentum. “Still eyeing $27.8K for a potential long here or a break and flip of $28.4 for Bitcoin,” van de Poppe writes.
In their most recent research, co-founders of Glassnode Yann Allemann and Jan Happel state that the monthly closing for Bitcoin in April was a significant signal for the bulls. BTC closed in the black for the fourth month in a row. The short-term trading channel is between $27,000 and $29,200, according to the analysts.
