At the end of last week, the crypto markets experienced a sudden dump, causing Bitcoin to fall nearly 10% in just two days. Bitcoin fared worse than altcoins, which was a bit surprising. After the significant drop, Bitcoin is now attempting to maintain its position above the 25k support level. The 25k mark holds substantial importance as a key support level for BTC. It previously acted as resistance both in August of last year and in February of 2023. Following the breakout in March, it was tested as a support in June, initiating a rally that led to a Bitcoin price of over 30k.
Moreover, this level is converging with the 23.6% mark of the uptrend channel that started in 2022. If BTC manages to hold onto this support, the bulls might try to recover the 200-day moving average once again. On the contrary, the lower boundary of the trend channel currently sits at 22,600 and is on the rise. A potential downward breach of the critical 25k support could result in prices revisiting the lower boundary of the channel once more.
