Bitcoin price is heading lower as bulls fail to regain momentum. A drop below $26,000 opens the door to $23,000.
Bitcoin continues to show signs of weakness as the BTC price nears $26,000. At press time, bitcoin is trading down 3.5% at a price of $26,303 with a market capitalization of $511 billion.
Amid the current downward spiral, bitcoin is breaking below key support levels, indicating that the correction is far from over and more pain lies ahead. According to popular crypto analyst Ali Martínez, the price of BTC is likely to fall to $23,000. In his recent tweet, Martínez
The existing selling pressure on Bitcoin increased in recent hours as the US markets opened on a negative note. The three major US indices are down 0.7% at press time, as the debate over raising the debt ceiling moves into its second day.
As talks between lawmakers continue, investors remain concerned about the possible outcome as the early June deadline approaches, and whether the United States will default on its debt. This could potentially send shockwaves throughout the broader crypto market.
Additional Losses Possible in Bitcoin and Crypto?
Crypto analyst Michael Van de Poppe said it would be unwise to make new forays into bitcoin at this time. Popper writes: “Moving south, since the $27,000 did not reverse, which means we will test down and cross $26,000, most likely. Acceleration at the moment, so we are waiting for a clear bullish divergence for entry.”
He added: “Total #crypto market cap remains in the MA and 200-week EMA areas. The moment of truth is approaching. If it breaks down, there will be some additional losses.”