Categories: Bitcoin Latest News

Bitcoin Nears Psychological Barrier, Here’s What To Look Out For

The cryptocurrency market has had another wild week, with the price of Bitcoin (BTC) hitting a new multi-month low of $37,700. The stock market also experienced a significant sell-off, owing to investor concerns over the size of the Federal Reserve’s next rate hike.

While the price of Bitcoin has fallen 41.72 percent from its all-time high of $69,000, a deeper look into various on-chain and derivatives data suggests that a decline in inflows and the shift from institutional investors are the key factors influencing BTC price behavior.

Bitcoin Stumbles On $40K

For a few weeks, Bitcoin has been consolidating below its 100-day moving average, failing to break above it. The price has been supported by the important $37K demand zone and the falling mid-term trendline, which has lessened the bearish momentum.

The $37,000 mark has now become important support for Bitcoin, posing a significant obstacle for bears aiming to drive the price lower. If it fails, the price will almost certainly fall below the $30K demand level. Furthermore, the RSI indicator is at 50%, with a bullish divergence between the RSI and the price, implying a reversal and a new bullish leg ahead. If Bitcoin is to launch a bullish surge, on the other hand.

Related Reading | Bitcoin 401k? Fidelity Investments Says Yes

The current price of bitcoin is $40,048, a figure that intraday traders should be extremely familiar with. According to the Relative Strength Index, the bulls may be gaining ground. The bulls will experience uptrend rallies with brief retracements into critical key levels this month if the Wycoff approach holds true.

BTC/USD trades above $40k. Source: TradingView

To optimize possible profit and reduce risk, traders who are willing to take an early risk can consider an intraday trading plan combined with a dollar-cost average technique. To complete Wave D of the macro Bitcoin triangle, the final target for Bitcoin price remains somewhere around $51,000.

The swing low at $37,650 has now invalidated the bullish premise. Consider $34,500 as the next goal for the bears if the Bitcoin price can be suppressed back to this level, resulting in a 15% drop from the present price.

Source: Santiment

Furthermore, according to Arcane Research, the volume of the king cryptocurrency’s supply that has been unchanged for a year or more has reached a high of 64 percent. This indicated that investors were accumulating sats.

Related Reading | Dogecoin (DOGE) Struggles, Drops 9% After Elon Musk Twitter Buyout

Featured image from Pixabay, charts from Santiment and TradingView.com

The cryptocurrency market has had another wild week, with the price of Bitcoin (BTC) hitting a new multi-month low of $37,700. The stock market also experienced a significant sell-off, owing to investor concerns over the size of the Federal Reserve’s next rate hike.

While the price of Bitcoin has fallen 41.72 percent from its all-time high of $69,000, a deeper look into various on-chain and derivatives data suggests that a decline in inflows and the shift from institutional investors are the key factors influencing BTC price behavior.

For a few weeks, Bitcoin has been consolidating below its 100-day moving average, failing to break above it. The price has been supported by the important $37K demand zone and the falling mid-term trendline, which has lessened the bearish momentum.

The $37,000 mark has now become important support for Bitcoin, posing a significant obstacle for bears aiming to drive the price lower. If it fails, the price will almost certainly fall below the $30K demand level. Furthermore, the RSI indicator is at 50%, with a bullish divergence between the RSI and the price, implying a reversal and a new bullish leg ahead. If Bitcoin is to launch a bullish surge, on the other hand.

Related Reading | Bitcoin 401k? Fidelity Investments Says Yes

The current price of bitcoin is $40,048, a figure that intraday traders should be extremely familiar with. According to the Relative Strength Index, the bulls may be gaining ground. The bulls will experience uptrend rallies with brief retracements into critical key levels this month if the Wycoff approach holds true.

BTC/USD trades above $40k. Source: TradingView

To optimize possible profit and reduce risk, traders who are willing to take an early risk can consider an intraday trading plan combined with a dollar-cost average technique. To complete Wave D of the macro Bitcoin triangle, the final target for Bitcoin price remains somewhere around $51,000.

The swing low at $37,650 has now invalidated the bullish premise. Consider $34,500 as the next goal for the bears if the Bitcoin price can be suppressed back to this level, resulting in a 15% drop from the present price.

Source: Santiment

Furthermore, according to Arcane Research, the volume of the king cryptocurrency’s supply that has been unchanged for a year or more has reached a high of 64 percent. This indicated that investors were accumulating sats.

Related Reading | Dogecoin (DOGE) Struggles, Drops 9% After Elon Musk Twitter Buyout

Featured image from Pixabay, charts from Santiment and TradingView.com

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