After being rejected at $45k, Bitcoin falls below $39k, and the price continues to drop without finding any support. The latest BTC surge was fantastic, but the positive feeling didn’t stay long, as bears gained over after another rejection from $45k. I expected the price to retest $42k and bounce back, but it didn’t, and the crucial $40k mark was also broken. So, for the time being, I’m not very optimistic in the short run.
There was a significant options expiry lately, which might have triggered the downturn. Another factor might be the situation between Russia and Ukraine.
Bitcoin Prices To Watch Out For
While many analysts projected that this would be the catalyst for the surge, to begin with, things have only gotten worse. A fire has erupted at a Ukrainian nuclear power plant, and if it explodes, the whole European Union would be affected.
Even the European stock market has suffered a setback, falling by about 17% from its all-time highs. The correction is even greater than the S& P 500 in the United States. Inflation in G7 countries is also rising, and the economy as a whole is in shambles. Because Bitcoin is already oversold, it’s impossible to predict whether the price will rise.
It’s possible that if Bitcoin falls below $39k, it’ll retest $38k before going higher. The bulls might try to break $40k again if there is a jump. The $39.5k-$40.5k zone will be crucial to breaking, and if it does, a good move to $42k is expected, as it was last time. Then there’s the $43.1k mark, which has served as both support and resistance for Bitcoin.
We’ve already broken below the EMA 20 and MA50 levels on the daily chart, and it’ll be crucial to climbing back up. Analysts anticipate that Bitcoin will be bullish if it stays over $40k and bearish if it falls below that level.