Bitcoin traders offer downside targets as BTC price risks sub-$25K dip

Source: TradingViewBitcoin stays muted on eve of CPIData from Cointelegraph Markets Pro and TradingView showed BTC/USD acting near $27,700 at the days Wall Street open.The pair had actually seen deeper losses the day prior, with a tap of $27,300 so far marking the regional bottom.Traders hoped that May 10 would offer some much-needed volatility in the form of the United States Consumer Price Index (CPI) print for April. High CPI to trigger decrease in danger properties and low CPI to cause a rally pic.twitter.com/gnjGt1XuPV— Matthew Dixon – CEO Evai (@mdtrade) May 9, 2023

“A verified breakdown will have an implied target near the $24k area,” it added the day prior.In part of his own analysis adopting a similar position, fellow trader Crypto Tony continued to alert of more disadvantage to come.”The closest support location is at 25619, which represents the typical purchase price of wallets that purchased Bitcoin within the last 3-6 months,” Abramchart summarized.Bitcoin Realized Price UTXO Age Bands chart. Source: CryptoQuantMagazine: Unstablecoins: Depegging, bank runs and other risks loomThis short article does not consist of investment suggestions or suggestions.

” Bitcoin still trending downwards, as $27,800 now ends up being resistance. Im expecting a sweep lower again, and after that were ready to long your longs in anticipation of CPI,” Michaël van de Poppe, founder and CEO of trading company Eight, told Twitter followers in an update.Van de Poppe added that a bullish divergence in deal volume was likewise needed to sustain a recovery.BTC/ USD annotated chart. Source: Michaël van de Poppe/ TwitterOthers were extremely less optimistic, with popular trading resource Game of Trades predicting bearish relocate to come.Bitcoin is most likely setting up for more disadvantage: Excess optimism ✅ Head and shoulders pattern ✅ Bearish momentum ✅ pic.twitter.com/OpRasEmbBJ— Game of Trades (@GameofTrades_) May 8, 2023

Other Questions People Ask

What downside targets are Bitcoin traders suggesting as BTC price risks sub-$25K dip?

Bitcoin traders are indicating that a verified breakdown could lead to an implied target near the $24,000 area. This perspective is supported by various analysts who are closely monitoring the market dynamics. Additionally, the closest support level is identified at $25,619, which reflects the average purchase price of wallets that acquired Bitcoin in the last 3-6 months.

How does the upcoming CPI report affect Bitcoin traders' downside targets?

The upcoming Consumer Price Index (CPI) report is crucial for Bitcoin traders as it could trigger significant market volatility. A high CPI might lead to a decrease in risk assets, including Bitcoin, while a low CPI could potentially spark a rally. Traders are closely watching these developments to adjust their downside targets accordingly, with many anticipating further downside movement if the CPI results are unfavorable.

What are the key indicators Bitcoin traders are watching for a potential dip below $25K?

Traders are focusing on several key indicators, including the formation of bearish patterns and overall market sentiment. The presence of excess optimism and a head and shoulders pattern has raised concerns about potential downside risks. Additionally, traders like Michaël van de Poppe emphasize the need for a bullish divergence in trading volume to support any recovery efforts.

What strategies are Bitcoin traders employing in light of potential dips below $25K?

In anticipation of potential dips, Bitcoin traders are employing strategies that include setting specific downside targets and identifying key support levels. Many are preparing to enter long positions after a sweep lower, particularly if the CPI report indicates favorable conditions. This tactical approach allows traders to capitalize on market fluctuations while managing risk effectively.

What sentiment is prevailing among Bitcoin traders regarding future price movements?

The prevailing sentiment among Bitcoin traders appears to be cautious and bearish, with many predicting further downside movements. Analysts have noted bearish momentum and patterns that suggest a potential decline below key support levels. As traders await critical economic data, there is a general expectation of increased volatility and possible price corrections in the near term.