The cryptocurrency market had another wild week, with the price of Bitcoin (BTC) hitting a new multi-month low at $37,700. The stock market also saw a significant sell-off, due to investor concerns about the scale of the Federal Reserve’s next rate hike.
While the bitcoin price is down 41.72 percent from an all-time high of $69,000, a deeper look at the diverse data on the chain and derivatives indicates that a drop in inflows and a shift from institutional investors are the main factors influencing bitcoin price behavior.
Bitcoin stumbles at $40K
For a few weeks, Bitcoin has been consolidating below the 100-day moving average, and it failed to break above it. The price was supported by the important $37,000 demand area and the medium-term descending trend line, which reduced the bearish momentum.
The $37,000 mark has now become an important support for Bitcoin, posing a major obstacle for the bears aiming to push the price lower. If it fails, the price will almost certainly drop below the $30K demand level. Furthermore, the RSI is at 50%, with a bullish divergence between the RSI and the price, indicating a reversal and a new bullish leg ahead. If Bitcoin is going to launch a bullish wave, on the other hand.
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The current price of Bitcoin is $40,048, a number that intraday traders should be very aware of. According to the Relative Strength Index, the bulls may be gaining ground. The bulls will test upside rallies with short corrections to critical key levels this month if Wycoff’s approach proves correct.
BTC/USD trades above $40k. Source: TradingView
To improve potential profit and reduce risk, traders who are willing to take early risk can consider a day trading plan combined with dollar cost averaging technique. To complete the D wave of the entire Bitcoin triangle, the final Bitcoin price target remains somewhere around $51,000.
The swing low at $37,650 has invalidated the bullish hypothesis. Keep in mind that $34,500 is the next target for the bears if the bitcoin price can be suppressed back to that level, resulting in a 15% drop from the current price.
Moreover, according to obscure researchThe volume of the cryptocurrency supply of the king that has not changed for a year or more has reached a high level of 64 percent. This indicates that investors have been piling up.
Featured image from Pixabay, charts from Santiment and TradingView.com