Tue, November 26

Bitcoin (BTC) Enters Below $28K; Should Investors Worry?

US House of Representatives Explores Blockchain and Web3 Future Bitcoin News
  • BTC seesaw in the price range of $28K to $30K.
  • Bitcoin prices remained optimistic, in the first three months of 2023.

The largest cryptocurrency in the world by market capitalization, Bitcoin (BTC), is having an unpleasant weekend after losing its key support level at $28,000. This has left exchange-traded fund investors uncertain about what will happen to Bitcoin after its dominant performance in 2023. At the time of writing, the BTC spot price is $27,724, a slight increase of 0.43% over the previous 24 hours. 

Even though the digital currency’s outlook seems bearish after last week’s surge (the $30K price range). However, a critical network metric has revealed that Bitcoin has the necessary technical support to boost HODLers’ patience and resilience.

BTC/USD Recovery Signal

According to predictions made by cryptocurrency analysts, a process known as “halving,” which limits the supply of new tokens, could be the catalyst for Bitcoin’s recovery and the beginning of a rally to over $50,000 next year.

According to Bloomberg Intelligence, the halving could result in at least a 78% advance, while the token is currently trading at around $27K.

In this scenario, also known as “halving” or “halves,” the amount of BTC that Bitcoin miners receive as payment for their work is cut in half. As part of the process of reducing the number of Bitcoins in circulation to 21 million tokens, this quarterly event will occur in April 2024. Following each of the previous three halvings, Bitcoin set new records.

Bitcoin (BTC) Price Chart (Source: CoinMarketCap)

The price of Bitcoin, however, remained in a bearish range below the $30,000 range. BTC continued to fall and traded below the $28,000 level of support. Also, the king of the global crypto market tested the $27,200 support and extended its losses. 

The price has made a low near $27,169 and is currently trading at $27,711. There was a small recovery wave to above $28K. In addition, a key bearish trend line with resistance near $28,000 was broken on the hourly chart of the BTC/USD pair.

A journalism graduate who is passionate about writing loves to dance and travel currently starts exploring blockchain technology.