The king of cryptocurrencies, Bitcoin, EPA has fallen below price support due to significant developments on environmental issues and other factors.
As of this writing, Bitcoin is currently priced at $ 38,832.74.
Now, many Bitcoin experts are worried that the price of Bitcoin could fall further as it struggles to maintain the স্ত 38,000 price level.
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Bitcoin is the lucrative criminal for the recession
Furthermore, profiteering may have some effect on why Bitcoin is pushing to break the $ 40,000 mark. Support at the $ 38,000 level could also be held as a trigger by buy-the-deep sentiment.
Santiment, a cryptocurrency data feed for investors, has tracked the growth of BTC in-profit transactions. The count has risen sharply over the past two weeks, all of which were classified as sales.
That being said, BTC cannot recover market value quickly unless traders stop selling.
Bitcoin traded below $ 40,000 last week. Low volume crypto can be frustrating for traders and investors.
BTC total market cap at $731.71 billion on the daily chart | Source: TradingView.com
In addition, Bitcoin fell sharply on Sunday but recovered the next day. So, in the last 24 hours, prices have risen 2.7% and bounced back.
ZebPay analysts said the top currency fell to $ 38,750 with a 61.8% Fibonacci retracement level and consequently to $ 37,386.
Bitcoin has multiple support at around $ 37,300 which has already happened in the past, so it is psychologically adaptable and showing the same trend.
RSI is showing positive variation
Since Crypto’s relative strength index hit the long-term trendline, BTC was rejected three times. In order for BTC market price to improve, the trendline needs to be broken. BTC has technically formed this declining wage pattern but fortunately the RSI has shown positive variation.
Bitcoin has fallen above 20% in the last month. Now, such a move could trigger a flush-out in the futures market and lead to a massive decline in open interest.
The problem is that open interest does not decrease significantly with the current downtrend. This is still a bit higher than in March 2022 when the most sought after crypto was trading at a relatively similar price.
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So, if the price closes and stays above the wage resistance line, an increase from $ 41k to $ 41.5k is expected.
However, a break or break below support would be tantamount to further slipping of Bitcoin and prices could fall to the $ 37k- $ 35k level.
If the price breaks at this level, expect a lot of expiration and price reduction considering the high open interest as opposed to the market cap.
Now, the $ 37K level is an important area that needs to be monitored in the next few days, as it could greatly affect market trends in the short term.
Featured image from Pixabay, chart from TradingView.com