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Bitcoin Struggles to Hold Support at $27K-$30K

Bitcoin (BTC) is testing an important support zone, although upside appears limited, especially on long-term charts. Momentum continues to slow, which increases the risk of a breakdown.Read MoreFeedzy

Bitcoin (BTC) has traded in a tight range of between $27,000 and $30,000 over the past few days. That’s a key support zone for BTC, and it is also the lower bound of a yearlong trading range.

BTC was trading at around $29,000 at press time and is down by 3% over the past 24 hours.

A decisive break below $27,000 could yield further downside targets for BTC, initially toward $17,823. Further, BTC’s downward sloping 50-day moving average indicates persistent trend weakness, which could keep sellers active.

Bitcoin faces strong resistance at between $33,000 and $36,000, which could stall an upswing in price. And on the weekly chart, momentum remains negative despite oversold readings. That could increase the risk of a breakdown in price, similar to what occurred in March 2020 and November 2018.

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