Bitcoin has been struggling to stay above $27,500 over the past few days.
The cryptocurrency slightly dipped below $27k on Wednesday but is now trading above that level once again.
The buying pressure in the market is currently low, and this could affect BTC’s price in the near term.
Bitcoin price prediction: BTC struggles to maintain price above $27,500
Bitcoin, the world’s largest cryptocurrency by market cap, has been underperforming so far this week. Over the last seven days, BTC has lost more than 7% of its value and dropped below the $28k mark.
The leading cryptocurrency recorded a sharp dump on Wednesday following reports that there was a transaction from the United States government’s BTC wallet.
Bitcoin recovered from its dump yesterday and went on to trade above the $27,700 level. However, the poor performance has resumed, and BTC has lost more than 2% of its value today.
At press time, the price of Bitcoin stands at $27,320 and could dip lower over the next few hours.
BTC could dip below $27k soon
Bitcoin has been underperforming since the United States inflation figures came out earlier this week. The inflation figure in the United States remains high, indicating that the Federal Reserve could continue with its interest rate hikes.
If that happens, BTC could drop below the $24k level in the near term as investors adjust to the new reality.
However, if the Federal Reserve pauses its rate hikes, assets like Bitcoin could be one of the biggest winners.
In terms of technical analysis, it is not looking good for Bitcoin in the short term. The MACD line is below the neutral zone, indicating that there are more sellers than buyers in the market.
Furthermore, the 14-day RSI of 38 shows that Bitcoin could enter the oversold region if the current market condition persists.
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