Once again, extreme fear is the dominant sentiment in the cryptocurrency community as Bitcoin (BTC) faces another trading day below the $40,000 level and the United States grapples with the Consumer Price Index (CPI). ) highest since 1981.
Data of Cointelegraph Markets Pro Y TradingView show that An early morning attempt to rally above $40,000 ran into a wall of resistance at $40,650 and BTC price eventually fell back below $39,600.
Here is a look at what various analysts are saying about the current state of Bitcoin and what could happen next as financial markets face ever-increasing uncertainty.
Bitcoin is simply retesting the main support/resistance zone
Bitcoin’s current price action is largely seen as a retest of a major support and resistance (S/R) zone according to crypto analyst and pseudonymous Twitter user ‘Credible Crypto’, who public the graph below outlining the multiple retests of this level way back in 2021.
According to Credible Crypto, both the middle green circle and the last red circle provide past examples of intra-week moves that exceeded or fell below the weekly level, “But it means nothing without a close to confirm.”
Credible Crypto said:
“Give me a close below the BLUE zone and I’ll change my tone, but for now there’s no reason to.”
Some analysts project a mediocre recovery
Understanding the on-chain behavior of Bitcoin investors was discussed in the most recent weekly report from glassnode, who pointed out that there has been “modest volume of profit-taking by investors” after BTC’s breakout from a multi-month consolidation range.
According to Glassnode, “the market has seen around 13,300 BTC in profits made each day since mid-February” and although this value is not “historically extreme”, seems “to be providing enough price headwinds”.
Overall, Bitcoin’s recent recovery has been relatively tenuous, with the market waiting for some major catalyst to help bring new momentum and new entries into the cryptocurrency market.
glassnode said:
“Especially through on-chain activity metrics like transaction counts and active users, the recovery has so far been relatively lackluster and continues to suggest that Bitcoin is a market dominated by HODLers, with few new investors entering.”
A “MEGA RISE” is coming
A strongly bullish narrative was highlighted by the crypto trader ‘BTCfuel’, who public the chart below outlining the possibility of an impending Bitcoin “mega bomb”.
BTCfuel said:
“Looking at the RSI, Bitcoin’s 2022 correction is very similar to 2021. Strong UP move imminent.”
The total cryptocurrency market capitalization currently stands at $1.85 trillion and the dominance rate of Bitcoin is 40.9%.
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.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.