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Bitcoin Slides Amid Risk-off Sentiment, but Analysts Remain Bullish

1 Mins read

The price of Bitcoin experienced a slight dip, sliding more than 1% over the past 24 hours to approach $27,500. Despite this correction, Bitcoin maintains its position comfortably above the $26,000 trading range that characterized the market for over a month. However, the cryptocurrency failed to consolidate its gains when it reached a peak near $28,500.

According to analyst Alex Kuptsikevich from broker FxPro, Bitcoin is still in an uptrend but encountered resistance at its 200-day moving average during the weekend. Traders will closely monitor whether the digital asset can successfully consolidate above $28,000, as breaching this level may lead to a quick rise to $29,000 to $29,300.

On Monday, Bitcoin faced pressure due to a broader rotation away from riskier assets like stocks and cryptocurrencies. This shift in sentiment was triggered by an attack carried out by terror group Hamas on Israel, injecting significant geopolitical risk into global markets. Should the pressure on risk assets persist, Bitcoin will face a critical test at the $27,200 to $27,000 range. Failure to find substantial support in this area may indicate a shift from a short-term trend to a downtrend.

In addition to Bitcoin’s decline, Ether, the second-largest cryptocurrency, dropped 2% to fall below $1,600. Altcoins and meme coins were also affected, with Cardano experiencing a 2% decrease and Polygon losing 3%. Furthermore, Dogecoin declined by 4%, while Shiba Inu fell 4%.

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