Bitcoin fell to an intraday low of $39714.69 on Friday, after a late rally above a critical resistance level on Wednesday at $41,500. BTC was lower as traders prepared for the long Easter holiday.
Bitcoin – the world’s most sought-after digital asset – is down nearly $10,000 from a two-week high of $48,220, its highest level in more than four months.
However, after weeks of pullbacks, market analysts seem to have set a stable floor at $39,300, as the bulls are now trying to push prices higher again.
Bitcoin feeling under pressure
Concerns about the macroeconomic and geopolitical concerns remained, alienating some investors.
Russian President Vladimir Putin said during a press conference on Thursday that peace talks with Ukraine have reached a dead end.
Putin also pledged that Russia’s “military operation” would continue indefinitely.
On the technical front, Bitcoin’s 200-day moving average has significantly thwarted the recent upward trend, leading to a significant price decline.
The bears are currently in control of the market, and the price is rapidly dropping, breaking the bottom of the 50-day and 100-day moving averages.
The $37,000 and $34,000 demand areas represent the next levels of Bitcoin support. If the price settles on the important short-term support level around $37,000, it may resume its rise towards the important resistance level at $45K.
BTC total market cap at $752.41 billion on the daily chart | Source: TradingView.com
BTC could touch $33,000
If this level is not maintained, Bitcoin’s next stop could be the important $33,000 demand area.
Bitcoin has lost more than 15% in the past week, leading one indicator to declare that the market has entered a time of “extreme anxiety”.
The price drop is occurring in the context of a broader downturn in global financial markets, spurred by geopolitical crises and uncertainty over the prospect of US Federal Reserve monetary policy tightening.
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The future still looks bright
Despite the current poor performance of Bitcoin, a prominent trader believes that the price of the cryptocurrency may double in the next two years.
Peter Brandt made the prediction in response to a tweet from Tuur Demeester, a longtime Bitcoin supporter.
According to the latter, after long periods of consolidation, Bitcoin tends to appear “like anything else on this earth.”
According to Brandt’s predictions, Bitcoin could double in value within two years or continue its sideways streak for an extended period of time.
An experienced trader previously predicted that Bitcoin’s next “rocket phase” would begin in 2024, based on how previous market cycles developed.
Featured image from DataDriveInvestor, chart from TradingView.com