Last week was the toughest week since the November FTX crash, with Bitcoin falling more than 10%.

According to the cryptocurrency screener Cryptovizor, which determines the price of BTC/USD based on the results of trading on spot exchanges, the lowest point of decline corresponded to $27,045, while the week closed with a bearish engulfing candlestick pattern.

Bitcoin weekly chart. Source: Cryptovizor

The collapse of the Bitcoin rate and the bearish pattern did not confuse the head of the trading company Eight, Michael van de Poppe. It sticks to the following script:

$26,600, then $28,800, then $25,000. Although at $28,800 the market may be stronger than expected. The critical level now is $27,800.

Bitcoin 2-hour chart. Michael van de Poppe's forecast

Trader Crypto Tony also believes that a local bottom will be found at a depth of $26,600, where he plans to close his short position.

Bitcoin 4-hour chart. Crypto Tony forecast

Similarly, Material Indicators, a resource that regularly publishes data on the location of orders on the Binance exchange, indicated a significant accumulation of buy orders in the $26,700 area.

Another trader, Ash WSB, published a diagram of the current levels on the Bitcoin chart, which is completely consistent with the forecasts above, and added:

The market has already priced in that on May 3, the US Federal Open Market Committee (FOMC) will raise the rate by 0.25%.

But that will be next week, and this week we still have to see Bitcoin’s reaction to the latest data on the US Personal Consumption Expenditures (PCE) index. This is one of the most important parameters that the Fed takes into account when making rate decisions. The data will be published on Friday, April 28 at 15:30 (MSK).

And a few words about what is happening behind the scenes of the current dump. Analyst Moustache uses the QQE indicator ('Qualitative Quantitative Estimation' - a type of RSI) to assess the accumulation of Bitcoin by smart money. He claims that every time QQE crosses zero, a powerful bull rally begins (this happened in 2011, 2015 and 2019). Now is just such a moment. Mustache summarized:

The smart money has finished accumulating Bitcoin.

Bitcoin 2-week chart. Analytics Mustache