Bitcoin price prediction: BTC drops 6%, is the worst yet to come?

Author: Ali B., Cryptonews; Compiler: Songxue, Golden Finance

In the volatile world of cryptocurrencies, bitcoin has maintained its status as the most important digital asset despite its recent sharp decline.

As of today, Bitcoin's real-time price is hovering around $25,772, up slightly by around 0.25% over the past 24 hours. However, this modest gain did not mask the 6% decline the cryptocurrency has experienced over the past week.

Bitcoin's 24-hour trading volume reaches US$12.3 billion, maintaining its No. 1 primacy in CoinMarketCap's rankings.

The currency's real-time market capitalization stands at an impressive $502 million, while its circulating supply is nearly 19,478,418 BTC, approaching its final supply cap of 21,000,000 BTC tokens.

The worst is yet to come for Bitcoin, but with Bitcoin's brief plunge, investors and market analysts can't help but wonder: Is the worst yet for Bitcoin?

Bitcoin Price Prediction

Bitcoin price remains in a consolidation phase, holding above the $25,500 mark. While the potential for a corrective upside exists, any significant upward move is likely to face resistance near the $26,200 mark.

Previous attempts to break through the $26,000 resistance level have been unsuccessful, with Bitcoin lacking momentum to break out of the $26,000-$26,200 range.

After these failed attempts, the cryptocurrency staged a bearish pullback, falling below the $25,650 mark. Still, the resilient bulls held onto the $25,350 support, allowing Bitcoin to reclaim the region above $25,500.

It is currently trading below the $26,000 mark and the 100 hourly simple moving average. Additionally, a significant bearish trend line has been identified presenting resistance near $25,950 on the hourly chart of BTC/USD.

Bitcoin Price Chart - Source: Tradingview

An immediate resistance hovers around the $26,000 area, parallel to the trend line and closely aligned with the 23.6% Fibonacci retracement level of the sharp decline from the $28,150 top to $25,333 bottom.

The first significant resistance lies at the $26,200 mark. A clear break above this resistance could pave the way for a move towards $26,750, which is close to the 50% Fibonacci retracement level of the aforementioned major decline.

Beyond this, the $27,000 resistance looms, a break above which could provide bulls with an opportunity for a sustained rally, possibly targeting the $28,000 benchmark.

However, if Bitcoin struggles to break above the $26,000 resistance, a downside move is likely. Immediate support is near $25,500, followed by $25,350.

A decisive break below the latter could intensify selling pressure, potentially pushing the price near $24,500 or even as low as $24,000.