BTC’s value dips under $29K, is a further decline expected?

• Cryptocurrency trader Michael Pizzino predicts a swift recovery for Bitcoin (BTC).
• Bitcoin’s value may continue to decrease due to a momentum shift.
• Pizzino believes Bitcoin must maintain the $29K mark for a rebound.

A seasoned cryptocurrency trader, Michael Pizzino, has forecasted a swift recovery for Bitcoin following its 24-hour depreciation. He highlighted in his analysis that the premier cryptocurrency is currently positioned at a crucial support level, which, in his opinion, must be maintained to facilitate a rapid rebound. Additionally, he underscored the significance of the $29K mark, indicating it as a critical point to monitor in the forthcoming days.

The daily BTC chart shows a short-term bullish falling wedge pattern and a medium-term bearish rising wedge pattern. Throughout the previous week, BTC’s price has made multiple attempts to break through the bullish chart structure and surpass the $30K threshold. However, despite these attempts, bearish forces successfully suppressed the price rise and prevented a breakout.

The latest attempt to break through this chart pattern occurred on Monday but failed. The inability to surpass the upper limit of the chart pattern triggered a sharp drop in Bitcoin’s value, resulting in the loss of support from the 9, 20, and 50-day Exponential Moving Average (EMA) lines on its daily chart.

The downward trajectory of Bitcoin’s value may continue into the forthcoming week, considering the momentum shift that currently benefits sellers, as suggested by technical analysis. As of the latest update, the 9-day Exponential Moving Average (EMA) was positioned under the 20-day EMA, with both of these metrics falling below the 50-day EMA, further reinforcing this outlook.

This setup suggests that BTC has embarked on a short to medium-term downward trajectory, indicating a potential further depreciation in its value. Should this pessimistic outlook materialize, BTC could test the lower limit of the medium-term ascending wedge pattern, which is around $28,215, in the forthcoming week.

Penetration below this threshold could potentially set the stage for a decline to $27.5K in the following week. Nonetheless, if the bearish trend continues, the digital asset’s value could slump to $26,915 by the month’s end.

It’s crucial to highlight that this pessimistic forecast would be invalidated if BTC manages to secure a daily candle close beyond the $29K mark. Under these circumstances, the digital currency’s value would make a renewed effort to break through the $30K resistance level.