The cryptocurrency market deteriorated on April 11 after concerns about rising inflation, the prospect of several more Federal Reserve interest rates and fears of a global food shortage led to widespread weakness in global financial markets.
Data from Cointelegraph Markets Pro and TradingView shows that bears broke through the bulls’ defense line at $42,000 in the early hours of trading Monday to drop Bitcoin (BTC) to an intraday low of $39,200, and several analysts are forecasting even lower prices in the near term.
BTC/USDT 1-day chart. Source: TradingView
Here’s a look at what analysts are saying about Monday’s move lower and whether or not traders should expect more downside in the coming days.
$40,000 or broke
The drop below $40,000 was hinted at by market analyst Michaël van de Poppe, who published the chart below on Sunday, highlighting Bitcoin’s strong move, but he also warned that “it’s the weekend and we have yet to break this resistance zone.”
BTC/USD 4 hour chart. Source: Twitter
After Monday’s pullback, van de Poppe posted a follow-up tweet addressing the rejection at $43,000 and offering insight on which level to watch as the next support. According to the trader, “the green zone” would need to become support in the $43,000-$44,000 range to sustain burgeoning bullish momentum.
This Bear Market Is “Different”
BTC/USD 1 day chart. Source: Twitter
A glimpse of the confusion many crypto traders have experienced over the past year was provided by decentralized financial advisor and pseudonymous Twitter trader “McKenna,” who posted the chart below looking at bitcoin price action since April 2021. McKenna said that “this has been the weirdest bear market I’ve ever seen.”
McKenna said
“I don’t even think we’ll see below $30k, I’m more for just choppy price action in that area, which is hell too. I just need corn to chill and run my altcoins.”
A similar opinion was expressed by crypto analyst and pseudonymous Twitter user 360Trader, who posted the chart below, which highlights the area of consolidation Bitcoin has been trading in since last November.
BTC/USD 1 day chart. Source: Twitter
360Trader said,
“Bitcoin consolidation continues…leverage is under control…float is still drying up…This won’t last forever. Just stick on a patch and keep pushing.”
Related: Bitcoin continues to fall as former BitMEX CEO gives BTC price target of $30,000 for June
Where does bitcoin go from here?
A final glimpse into the future of BTC price came from Philip Swift, market analyst and founder of LookintoBitcoin, who posted the chart below showing recent price rejection from the 1-year moving average (MA).
BTC/USD 1 day chart. Source: Twitter
According to Swift, the 1-year MA has “acted as a linchpin for bull vs. bear markets throughout Bitcoin’s history.”
Swift said
“I can’t really call it a bull market until we’re convincingly back above the 1-year MA.”
The total cryptocurrency market cap is now $1.874 trillion and Bitcoin’s dominance rate is 41.4%.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.
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