BTC in Descending elevator, can Retailers save the BTC?

Author: Trade Pro Skills

Friday, 06 May 2022 Number of words: 354 Study time: 2 Minutes Views: 512


Bitcoin price down below $30,000, or above $42,000?

Market analyst – IFC Markets

Finally, the critical level of 40,000 has been breached, and now BTC is trading with almost 10% loss in 24 hours, down around 36,400 US dollars, which is nearly 1,000 US dollars higher than the overnight low. Since April 4, the asset has been trading between the middle and lower lines of its Bollinger bands. However, this long-term slow downtrend could not still touch the 2022 low under 33,000. 

Two essential factors prevent more falls. First of all, we have too many retailers that think after seeing prices around 70,000 USD, and now it is an excellent opportunity to buy with more than 40% discount. On the other hand, we had some good news about more countries and economies accepting the BTC as a legal payment system and more interest in Central Banks Digital Currencies (CBDC). Add the Stock market's uncertainty on top of all this news, and we can see some more possible interests for cryptocurrencies, which is another reason that acted as a shield against market collapse. 

The latest decline which last night we saw in the bitcoin and other currencies was in line with the decline seen across all kinds of markets, as a logical reaction to the FED decision, after the first emotional reaction. In the end, technically, we can see some more reasons now for more falls, and it sounds like the entire cryptocurrency market is prepping for one of the most significant bear movements.

From the technical point of view, from April 3-4, we can see that Candles are moving under the middle line of Bollinger bands with a sharp decline under the lower band around 37,000 US dollars, and see the prices even under 36,000. For now, technically, indicators remind bearish with significant support levels at $36,000, followed by $35,500, and breaching under this level will put the 33,000 US Dollar in the spotlight. On the other hand, we have the resistance Levels at $37,500, $38,500, and then $40,000, which would be the psychological pivot to start the bullish movement, but more bulls will be seen above 42,000 US dollars.

BTC in Descending elevator,

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Tags: BTC
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