Bitcoin selling seems to be taking a pause despite the United States launching new sanctions against Russia on February 22.
Data from Cointelegraph Markets Pro and TradingView shows that bitcoin (BTC) price continues to hover slightly below $38,000, which some analysts have identified as a major support and resistance zone.
Next, We show what analysts are saying about the price of bitcoin and the levels to watch in the short term.
25% of entities are in losses
Glassnode published the following chart, analyzing the percentage of entities in profit, and the analysts concluded “that the proportion of on-chain entities in earnings ranges between 65.78% and 76.7% of the network.”
As shown in the graph above, “more than a quarter of all network entities are now underwater in position,” while “approximately 10.9% of the network has a cost base between $33,500 and $44,600.”
According to Glassnode:
“If the market fails to establish a sustainable uptrend, these users are statistically the most likely to become another source of selling pressure, especially if the price trades below their cost basis.”
Price could continue to “probe lower”
More information on the headwinds facing BTC was provided by cryptocurrency research firm Delphi Digital, which previously noted that bitcoin was “moving in a daily, weekly and monthly resistance area.”
This confluence of resistance led Delphi Digital to suggest that “The $45,000 level was a logical place to expect some profit-taking/risk-off activity given the confluence of resistance zones and the speed and magnitude of the move from recent lows,” which indeed turned out to be the case, as the price crashed shortly after reaching that level.
According to Delphi Digital, bitcoin price “has been stagnant for the past two weeks” and has yet to “regain any weekly support structure or the midpoint of the yearly range.”
“If the $40,000 level doesn’t hold, the next level of the market structure is in the $38,500 zone. If we lose this level, expect previous lows to be revisited, with a decent chance that the price will try to go lower.”
Whales seek to accumulate below USD 38,000
One last bit of data on the movement of Bitcoin whales was provided by on-chain analytics firm Whalemap, which public the chart below highlighting the areas where BTC wallets saw big inflows over the past four months.
“The whales’ areas of interest are very well defined now. Below $36,000-37,000, $34,000 is expected. Macro trend reversal above $48,500.”
Potential resistance areas identified on the chart above include $40,000, $43,500, $46,500, and a major resistance level at $48,500.
One last shred of hope for BTC bulls was offered by Bloomberg Senior Commodities Strategist Mike McGlone, who posted the following tweet, suggesting that bitcoin is currently for sale relative to “its yearly average since the 2020 and 2018 lows.”
About 20% below its 50-week ma, #bitcoin is approaching too-cold levels that have often resulted in good price support. Our graphic depicts the most extreme discount for the crypto vs. its annual average since the 2020 and 2018 lows. On Feb. 22, the #DowJones was close to parity pic.twitter.com/SXUaEv0jow
— Mike McGlone (@mikemcglone11) February 22, 2022
Around 20% below its 50-week high, Bitcoin is approaching too cold levels that have often resulted in good price support. Our chart represents the most extreme discount of the cryptocurrency against its annual average since the lows of 2020 and 2018. On February 22, the DowJones was close to parity.
The global cryptocurrency market capitalization now stands at $1.708 trillion and the dominance rate of Bitcoin is 42.1%.
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