empty
15.05.2023 10:43 AM
Bitcoin tests $25.5k level and is at crossroads

The previous trading week turned out to be bearish for Bitcoin. The asset was declining within the local downward trend to the $27k level. Subsequently, the correction was exacerbated due to a spike in volatility, and the asset continued to decline to $26k.

This image is no longer relevant

By the end of Friday, the Bitcoin price managed to test the local low near the $25.5k level. It is in this range that large volumes of liquidity, formed by investors during the price consolidation above $26k, are located. However, we did not see a strong reaction from buyers over the weekend, indicating the likelihood of further decline.

Will Bitcoin go even lower?

Bitcoin has been in a correction phase for over a week, and during this period, the asset has achieved the main correction targets. The BTC price managed to reach the $25.5k level, but we only saw a reaction from buyers on Monday when the price managed to recover above $27k.

This image is no longer relevant

This recovery growth can be called a "dead cat bounce," as the buyers' positions have clearly weakened. It is not expected that the pullback after the correction could be strong enough to reverse the trend, as trading volumes remain low and market sentiment is pessimistic.

This image is no longer relevant

At the same time, it should be noted that Bitcoin has fully implemented the "head and shoulders" pattern, which indicated a trend reversal. The cryptocurrency price has reached the ultimate potential of this pattern, and the long lower wick of the last candle indicates a local profit taking.

Bitcoin at a crossroads

Despite the realization of the final potential of the "head and shoulders" technical analysis pattern, as well as the local upward pullback of the BTC price, we cannot state the completion of the corrective movement. The $25k–$25.5k level is the basis of the upward trend, which allowed BTC to reach the $31k level, and its breakdown will lead to the destruction of the structure of the upward trend.

This image is no longer relevant

Given that the bulls did not play back the $25.5k test, and the price managed to trade near the $26.5k level for a while, we should consider the probability of exacerbating the downward trend. In other words, the weakness of the buyers puts Bitcoin at a crossroads, where one of the movement options is the destruction of the structure of the upward trend.

Bearish scenario

The bearish scenario for Bitcoin would be a local consolidation near $27.5k, followed by a further plunge towards the $25k–$25.5k range. In this scenario, BTC/USD has the potential to make a bearish breakdown at the $25k level and start moving towards $24k. As it has become clear, no strong buyer is found below $26k, and therefore, the price can be pressured further.

This image is no longer relevant

The local support level for the Bitcoin price on the way to $24k could be the $24,650 mark. This is where the local accumulation stage took place, so there is a chance for an attempt to buy back the price and start a recovery movement. However, if this mark is broken and further decline to $24k, the structure of the upward trend is completely broken, and the key target for the correction becomes the $20k level.

Bullish scenario

In the bullish scenario, after local consolidation, Bitcoin manages to defend the $26k level during subsequent attempts at bearish pressure. The key target for buyers at this stage is to maintain the structure of the upward trend. To do this, it is necessary to protect the $25k level and restore the cryptocurrency price above the $28k mark.

This image is no longer relevant

However, as of 08:00 UTC on Monday, the probability of a bearish scenario is higher. There is no strong buyer in the market, and the local positive of technical indicators is negated by the sharp downward peak of the MACD and bearish sentiment. The situation may change with the opening of the U.S. markets, but at the moment, there is a total dominance of bears in the BTC market.

Artem Petrenko,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Bitcoin's technical outlook appears promising

Bitcoin appears to have found a bottom near $104,000 and is currently trading around $104,500 in early June. It is evident that the cryptocurrency is positioned at a psychological

Jakub Novak 12:36 2025-06-02 UTC+2

Trading Recommendations for the Cryptocurrency Market on June 2

Despite the corrections at the end of last week, Bitcoin and Ethereum are once again showing upward momentum, although Ethereum is lagging behind. Experts from the banking group also point

Miroslaw Bawulski 09:45 2025-06-02 UTC+2

Bitcoin Forecast for June 2, 2025

Bitcoin Over the weekend, Bitcoin formed a reversal from the supports at the target level of 102,698 and the embedded green price channel line. If today's candlestick closes in white

Laurie Bailey 04:30 2025-06-02 UTC+2

Crypto investors still overwhelmed by optimism

Despite the ongoing correction, investor sentiment toward buying crypto assets remains positive, as indicated by the so-called Fear & Greed Index, which, as we noted earlier, is still

Jurij Tolin 16:24 2025-05-30 UTC+2

Do you know the most profitable company in the crypto industry?

While Bitcoin and Ethereum saw a fairly solid correction toward the end of the week, the most profitable company in the crypto industry — Tether — may have been quietly

Jakub Novak 16:16 2025-05-30 UTC+2

Trading Recommendations for the Cryptocurrency Market on May 30

Bitcoin and Ethereum continued their corrections, falling significantly throughout yesterday. The decline extended into today's Asian session, with Bitcoin updating its price to $104,500 and Ethereum testing $2,560. Thus

Miroslaw Bawulski 09:29 2025-05-30 UTC+2

Trading tips on crypto market for May 29 (North American session)

Bitcoin has shown a fairly solid rebound, climbing back above the $108,000 mark and breaking through $109,000. The chart below highlights a morning breakout through the $108,100 level. Statistics confirm

Miroslaw Bawulski 15:46 2025-05-29 UTC+2

Bitcoin recovers to $109,000

Bitcoin quickly rebounded to the $109,000 mark today. This rapid surge, especially following yesterday's dip to around $106,600, once again highlights the strong interest from large players who take advantage

Jakub Novak 15:04 2025-05-29 UTC+2

Bitcoin demand shows no signs of fading

Bitcoin demand has shown resilience once again. After a brief dip below the $107,000 mark, the decline was swiftly bought up, demonstrating that buyers remain active and confident

Jakub Novak 13:38 2025-05-29 UTC+2

Trading Recommendations for the Cryptocurrency Market on May 29

Bitcoin is starting a correction, and Ethereum is showing signs of strength. Yesterday, Bitcoin dipped to around $107,000 before rebounding sharply — a sign that many traders are cautious about

Miroslaw Bawulski 08:56 2025-05-29 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.