The overall crypto market continues to plunge for eight weeks in a row as BTC/USD remains in its 7th-day selloff despite major market indicators painting a fairly positive picture in the near term. The majority of enthusiasts attribute the panic selling to the instability in Kazakhstan, where the Internet was shut down, resulting in a large drop in the hash rate on the BTC network, causing fears amongst investors. Kazakhstan took 2nd place worldwide in BTC production after China’s ban on Miners. BTC’s attempt to cross through the moving average (MA 200) was rejected, falling through support around $45,000 and $43,000. According to several analysts, the next line of aggressive defense for the bulls is expecting bears in the range of $40,000 -$37,500. At the time of analysis, BTC/USD is trading lower at $40,579 after reaching intraday lows of $40,505. Bitcoin liquid stock, which is 24%, is held in wallets that spend or trade coins regularly. As per Glassnode’s findings, the growth of illiquid asset supply rose last year, accounting for 76% of the overall supply.
Key Levels
Resistance Levels: $48,500, $45,000, $43,000
Support Levels: $40,000, $37,500, $35,000
BTC/USD Daily ChartBTC/USD might be due to rebound in the coming week if sellers fail to gain traction below the $40,000 psychological support zone. The relative strength index (RSI) is oversold but not extremely on the daily time frame, meaning that the pair could rebound at any time. The $45,000 level is a likely bullish target, although the $48,000 resistance level is also possible.
If the pair trades below the $40,000 level, sellers may test the $39,000 and $37,000 levels. The aggressive selling interest started from the all-time high of $69,000, with the technical indicators confirming the recent move. The pair seems to fill up the oversold conditions at this time, a rebound, or at least a sideways trading, cannot be ruled out in the near term.
BTC/USD 4-Hour ChartOn the lower time frame, Bitcoin (BTC) continues to retreat below the short-term moving averages (MAs) and is creating a fresh one-month low of $40,505 at the time of analysis. BTC/USD is falling around the one-month trough near the lower band of the channel and is holding in a strong bearish move in the short term.
In terms of trend, the deviation between MA’s 50 and 200 hints at a continuation of a downward trajectory. A move below $40,000 could trigger a selling wave towards the level of $37,000 despite overstretched RSI in the oversold region. However, the negative traction in BTC/USD could slow pace in the short term, though signals for a trend reversal remain absent.
Note: Kryptomoney.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results
Image Credit: Shutterstock
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
