The cryptocurrency market took a downward turn on April 11 after concerns related to rising inflation, the prospect of more interest rate hikes by the US Federal Reserve, and fears of a global food shortages will cause widespread weakness in financial markets.
Data of Cointelegraph Markets Pro Y TradingView show that the bears broke the bulls’ defensive line at $42,000 in the early hours of trading on Monday to drop Bitcoin (BTC) to a daily low of $39,200 with several analysts projecting even lower prices in the near term.
Below is what analysts are saying about Monday’s move lower and whether traders should expect more declines in the coming days.
$40,000 or it’s over
The drop below $40,000 was foreshadowed by market analyst Michaël van de Poppe, who public the chart below on Sunday highlighting Bitcoin’s strong move, but also warned that “it’s the weekend and we have yet to break this resistance zone.”
Following Monday’s pullback, van de Poppe posted a follow-up tweet addressing the rejection at $43,000 and offering insight on what level to watch as next support. According to the trader, “the green zone” in the range of $43,000 to $44,000 would have to become support to preserve any budding bullish momentum.
This bear market is “different”
Insight into the confusion many cryptocurrency traders have been experiencing over the past year was provided by decentralized finance advisor and pseudonymous Twitter trader ‘McKenna’, who public the following chart analyzing Bitcoin price action since April 2021. McKenna said that “this has been the weirdest bear market I have ever seen.”
Mckenna said:
“I don’t even think we’ll see below $30k, I’m more for choppy price action in this range which is also hell. I just need bitcoin to cool down and let my altcoins run.”
A similar sentiment was expressed by cryptanalyst and pseudonymous Twitter user ‘360 Trader’, who public The following graph highlights the consolidation range in which Bitcoin has been fluctuating since last November.
360Trader said:
“Bitcoin consolidation continues…leverage is in control…float continues to dry up…This is not going to last forever. Just put a Band-Aid on and keep pushing.”
Where is Bitcoin going from now?
One last insight on the future of the BTC price was provided by Philip Swift, market analyst and founder of LookintoBitcoin, who public the chart below showing the recent price rejection of the 1-year moving average (MA).
According to Swift, the 1-year MA “has acted as the pivot point for bull and bear markets throughout Bitcoin’s history.”
Swift said:
“You can’t really call it a bull market until we are convincingly above the 1-year MA.”
The total cryptocurrency market capitalization currently stands at $1.874 trillion and the dominance ratio of Bitcoin is 41.4%.
The views and opinions expressed here 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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