- Bitcoin price seems ready to collapse and is awaiting a strong push to kick-start its nosedive.
- The $26,555 and $25,175 support levels are key for bulls to seize control from sellers.
- Invalidation of the bearish outlook will occur if BTC manages to flip the $28,051 hurdle into a support floor.
Bitcoin price is delaying a crash that has been brewing for roughly two weeks. A failure to push higher could result in a steep correction next week. The troubling macroeconomic conditions could be key in catalyzing and trigger a nosedive for BTC holders.
Bitcoin price consolidates
Bitcoin price fractal, as explained in the previous article, is very close to maturing. After producing a decisive daily candlestick close below the critical support level at $26,555, bears seem to have the upper hand.
As bulls struggle for recovery, short sellers need to watch out for rejection at the aforementioned barrier. If successful, what follows next will be a 13% correction to $23,052. However, the selling spree could prematurely cease at $25,175, which is another critical support level.
In a worst-case scenario, Bitcoin price could revisit the $22,139 foothold.
A conservative outlook forecasts a 5.30% slide in Bitcoin price, but the pessimistic scenario reveals that the sell-off could extend up to 16.60%.
BTC/USDT 12-hour chart
While the pessimistic outlook for Bitcoin price has logical reasoning behind it, investors need to be cautious of the changing macroeconomic conditions. A US debt default could trigger a rally in safe haven assets like gold, silver and other precious metals. If such a scenario plays out, Bitcoin price could also tag along for a joyride considering the 2023 bull rally began due to eroding trust in the traditional banking sector.
Invalidation of the bearish outlook will occur if BTC manages to flip $28,051 hurdle into a support floor. A decisive flip of $30,287 will signal the start of a bullish outlook for Bitcoin price. In such a case, BTC could continue the 2023 rally and tag the $35,260 and $41,273 hurdles.