The sell-off of Bitcoin seems to be in pause despite the fact that the United States placed new sanctions on Russia on February 22.
Cointelegraph Markets Pro and TradingView data show that Bitcoin’s price is still hovering just below $38,000. This has been identified by some analysts as a significant support and/or resistance zone.
BTC/USDT 1-day chart. Source: TradingView
We take a closer look at the opinions of analysts regarding Bitcoin prices and which levels are worth watching in the near-term.
25% of entities are underwater
Glassnode, an on-chain data outlet, published the following chart. It analyzes the percentage of entities in profits and concludes that the ratio oscillating between 65.78% to 76.7% is typical of any network.
The percentage of Bitcoin-holding entities that are profitable Source: Glassnode
The chart shows that “more than 25% of all network entities are now in an underwater position”, while approximately 10.9% of the network’s cost base is between $33,500 to $44,600.
“If the market fails establish a sustainable upward trend, these users are statistically most likely to be yet another source of sell-side pressure. This is especially true if prices trade below their cost basis.
The price could “probe lower”
Delphi Digital, a cryptocurrency research company, provided further insight into the challenges facing Bitcoin. They previously stated that Bitcoin was “moving towards an area of daily and weekly resistance.”
Delphi Digital suggested that $45,000 was the logical price point to expect profit-taking and risk reduction activity because of the confluence between resistance zones and speed and magnitude of recent lows. This proved to be true as the price plummeted shortly after it reached that level.
BTC/USD 12-hour chart. Source: Delphi Digital
Delphi Digital claims that the Bitcoin price “has been stuck for the past two weeks” and that it has not “reclaimed any weekly support structure, or the midpoint in the yearly range.”
Delphi Digital said,
“If the $40,000 level is not held, the next level in market structure will be around $38,500. If we lose this level you can expect previous lows to be reexamined with a reasonable likelihood of price probing lower.
Related: Analysts believe Bitcoin is bottom as BTC rises to $38,000
Whales want to accumulate less than $38,000
Whalemap, an on-chain analysis company, posted this chart showing areas where BTC wallets experienced heavy inflows over the past four months.
Large Bitcoin wallet inflows. Whalemap
“The areas of whale interest are well-defined now. Below $36,000, $37,000 to $37,000 Above $48,500, Macro Trend Reversal
The chart shows possible areas of resistance at $40,000, $43,500 and $46,500. There is also a major resistance level at $48,500.
The Bloomberg Senior Commodity Strategist Mike McGlone offered a last bit of hope to BTC bulls by posting the following tweet suggesting that Bitcoin currently is on-sale relative “its annual average from the 2020 and 2018 lows.”
The 50-week MA of #Bitcoin has fallen 20%. This is a significant drop from the highs that have resulted in price support. This graphic shows the largest discount for crypto vs. the annual average since the lows of 2020 and 2018. On Feb. 22, the #DowJones was close to parity pic.twitter.com/SXUaEv0jow
Mike McGlone (@mikemcglone11), February 22, 2022
The total cryptocurrency market is now worth $1.708 trillion. Bitcoin’s dominance rate at 42.1%.
com. You should do your research before making any investment or trading decision.
Eileen Wilson –Technology and Energy
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