BTC could experience heightened volatility, analyst suggests

• Bitcoin fails to maintain level above $30,308, resulting in price dip.
• BTC’s price drops below support of 20-day EMA line.
• BTC’s potential breakthrough of resistance level at $31,800 if sustained above $30,308.

Prominent trader and analyst Michael van de Poppe recently took to Twitter to highlight a pivotal juncture for Bitcoin (BTC) in its current trading phase. According to his assessment, BTC is in a critical zone that it must surpass. Van de Poppe further projected that if the dominant cryptocurrency breaches the $30,308 level, it could rally to even greater heights. Conversely, failure to overcome this resistance could result in a significant BTC price downturn.

Yesterday, Bitcoin’s price made a strong push to surpass the $30,308 mark, but unfortunately, it failed to maintain that level by the end of the trading session. As a result, the cryptocurrency’s price dipped below $30K within the last 24 hours and has remained at that level at the time of writing. Additionally, it is worth noting that Bitcoin’s price has also dropped below the support of the 20-day Exponential Moving Average (EMA) line.

If BTC breaches the 50-day EMA line at $29,389.91 within the next 48 hours, it will validate that it encountered resistance at the $30,308 level, as emphasized in van de Poppe’s tweet. This downward momentum could push BTC’s price below the $29,075 support level, leading to a potential test of the subsequent significant level at $28K.

Alternatively, if BTC manages to sustain its position above $30,308 over the next few days, it could establish a strong base for a potential breakthrough of the resistance level at $31,800 the following week. Should buying pressure persist, the market leader’s price may surpass the resistance at $34,000 and transform it into a support level, paving the way for a potential test at $36,360 in the upcoming fortnight.

As per writing, BTC was valued at $29,786.84, as per CoinMarketCap. This figure reflects a 24-hour decline of 0.43%, contributing to the cryptocurrency’s weekly performance dipping further into negative territory at -1.60%.

BTC peaked at $30,330.64 earlier today before experiencing a slight decline to its current trading level. Simultaneously, it recorded a 24-hour low of approximately $29,674.53. Consequently, BTC’s current trading position indicates closer proximity to its daily low than its daily high at the time of this update.