According to the latest reports, the leading cryptocurrency Bitcoin might be poised for a bearish trend in the near future as the technical indicators on the flagship cryptocurrency indicate a potential downward movement soon. The technical analysis published by MMBT on the financial analytical platform TradingView suggested that the flagship cryptocurrency might witness a dump head.
According to the technical analysis posted on TradingView, a lot of resistance has been witnessed at the $30,000 level. The resistance appears to be strong enough to trigger a bearish trend or form a ranging market. As per MMBT, should BTC fail to push through this resistance zone again, its price may drop as low as $26,000.
As far as the bull case is concerned, a healthy rally could be expected if Bitcoin manages to break through the $30,000 resistance level. As for the bear case, a breach of the $26,000 support zone might cause BTC to fall as low as $23,500. So $26,000 has emerged as the immediate support zone for daily trading, while $23,500 is a major Fibonacci support level.
Meanwhile, $30,000 is the price to watch out for a breakout. In the event that BTC rises above this price, it would be met with major resistance at $32,000. A strong bullish momentum could be expected once Bitcoin crosses this resistance zone, with the crypto reaching as high as $40,000.
At the time of writing, BTC was trading at $27,967, down 2.8% over the past 24 hours. The flagship cryptocurrency has lost nearly $36 billion in market capitalization since the beginning of this month. Its daily trading volume was the only positive metric, coming in at $15.2 billion with a 22% hike over the past 24 hours.
BTC’s recent price action has been affected by factors other than regular market events. For instance, the recent spike in Bitcoin’s transaction fees has become a matter of concern. On May 7, 2023, the total amount of fees paid on the Bitcoin blockchain reached $12.1 million, representing an 1800% surge compared to last month.
