bitcoin shortly after its price climbed above $27,000, it witnessed the strength of the bears. This caused the price to drop shortly after.
The increasing adoption of new tokens like PEPE and BRC-20 tokens has forced major tokens like Bitcoin or Ethereum to navigate a stagnant trend. Right now BTC pricedipped below substantial support, which has sparked many concerns among market participants.
As the price dropped below $27,000, “downtrend” predictions arose among investors. Traders, on the other hand, shaped their trading decisions by being afraid. According to Santiment, while social volume has seen a huge increase, traders are struggling to make a specific decision.
With the Bitcoin price revisiting the $26,000 level, traders are raising concerns that the price will drop to the $20,000 to $25,000 range. The social dominance of BTC has jumped to highs again, which is typically a sign of fear. Fear signals increase the likelihood of recovery.
Bitcoin price failed to hold the main support levels between $27,000 and $27,200. So now the next support zone is quite critical. Michael van de Poppe cautions that if the price fails to hold at these levels, there is a risk of a drop towards $25,000. pulled.
wanted #Bitcoin to hold above $27,000-27,200.
Didn’t happen, stopped out on my longs and in the waiting game now.
Reclaim that range, we’ll try again, or now we’ll be waiting for $26,400 sweep and/or $25,000.
— Michaël van de Poppe (@CryptoMichNL) May 18, 2023
The general trend is that the stagnation in price will continue. However, the end of this recession may be on the downside. However, despite a decrease in price, there is still a possibility of a rise in the altcoin market.
You can follow the current price action here.