Bitcoin price slides below $40K following a ‘lackluster’ breakout

Extreme fear reigns once more in the cryptocurrency community. After Bitcoin (BTC), which traded below $40,000, another day of trading was faced by the currency. The United States is currently facing the largest Consumer Price Index (CPI), since 1981.

Crypto Fear & Greed Index. Source: Alternative.me

Cointelegraph Markets Pro and TradingView data show that an attempt to rally above $40,000 in the early morning ran into resistance at $40.650 and that BTC price ultimately fell below $39,000.

BTC/USDT 1-day chart. Source: TradingView

Below is a list of what analysts have to say about Bitcoin’s current status and what might happen next as financial markets struggle with increasing uncertainty.

Bitcoin is simply retesting a major S/R area

According to crypto analyst and pseudonymous user on Twitter, ‘Credible Cyber’, the current price action in Bitcoin is seen as a retest zone of major support and resistance (S/R). He posted the following chart that shows the numerous retests of the level dating back to 2020.

BTC/USD 1-week chart. Source: Twitter

Credible Crypto says that both the last red and middle circles are examples of intra-week movement that were above or below the weekly level. “But it doesn’t mean anything without a close to verify.”

Credible Crypto claimed

“Give me a close under BLUE, and I’ll change the tune. But for now, there is no reason.”

Analysts predict a slow recovery

Glassnode’s latest weekly report discussed the on-chain behavior and profit-taking of Bitcoin investors. It noted that investors have taken a small amount of profits following the BTC breakout from its multi-month consolidation range.

Glassnode reports that the market has “received approximately 13,300 BTC in profit each day since February mid-February”. While this is not “historically extreme,” however, it appears to be “bearing sufficient headwinds to price movements.”

Bitcoin made profit. Source: Glassnode

Overall, Bitcoin’s recent recovery has been slow and the market is still waiting for a major catalyst that will bring new momentum to the market.

Glassnode stated,

“Especially when it comes to on-chain activity metrics such as transaction counts and active user, the recovery has so far been rather lackluster, which continues to indicate that Bitcoin is a HODLer dominated marketplace with few new investors.”

Related: Ethereum price “bullish triangle” puts 4-year highs against Bitcoin within reach

“MEGA PUMP” is on the horizon

Crypto trader “BTCfuel” highlighted a bullish narrative and posted the following chart, which highlights the possibility of a Bitcoin mega-pump.

BTC/USDT 1-day chart. Source: Twitter

BTCfuel stated,

“The 2022 Bitcoin correction looks very similar to 2021 when you look at the RSI. Strong BULLISH move imminent.”

The total cryptocurrency market is now worth $1.850 trillion, and Bitcoin is the dominant currency at 40.9%.

com. You should do your research before making any investment or trading decision.

2021's Most Anticipated Growth & Wealth-Building Opportunity

Join Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency Together

Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

Close Bitnami banner
Bitnami