According to Coingecko data, Bitcoin’s price fell below $40,000 Monday while the prices of other cryptocurrency suffered losses.
BTC trades very close to the two long-term support levels, but it has yet to show any bullish indicators.
Investors remain concerned about the Ukraine situation and the potential for a US Central Bank Rate Increase.
Global cryptocurrency market capitalization is now $1.80 trillion. This represents a decrease of 2.04 percent over the previous day. Over the past 24 hours, global crypto market volume has increased 20.13 percent and reached $65.06 billion.
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Bitcoin’s 50-day and 100 day moving averages crossed bullish last week. However, Bitcoin lost its bullish momentum and saw a price swing.
The price rebounded later in the week and tried to surpass the moving average lines again, but it was quickly rejected by the market and dropped below $40,000
There is pressure to sell Bitcoin
BTC prices dropped marginally over the week from April 18-24. The week started with an uptrend that led to a high local price of $42,976 but the prices declined over the latter part of the week. (Red icon) This can be interpreted to indicate selling pressure.
BTC currently trades well below $42,000. This critical level has been a support and resistance point for BTC over the long term since May 2021.
BTC Total Market Cap at $731.41 Billion on the Daily Chart | Source: TradingView.com
“Bitcoin and the majority of cryptocurrencies fell over the weekend as a result of growing tensions in Ukraine on the one hand and the US Federal Reserve’s views on interest rate hikes due to inflation on the other,” Edul Patel, chief executive and co-founder of Mudrex, explained.
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BTC To Gain Upward Momentum
Bitcoin has currently a support level at $37,000, and a resistance of 46,000. Patel believes that investors in crypto cryptocurrencies may notice a slowdown in the growth of BTC (ETH) and ETH (BTC). ETH has fallen by 3% since Friday and is trading at $3,000 below its previous high.
“If BTC falls below $35,000, the next significant support level will be $30,000. In the following days, we may see range-bound trading,” Patel said.
Meanwhile, the $42K support level for BTC has morphed into a significant resistance level in the shorter timeframes following the price’s failure to break above it.
The selling pressure became evident at $42K, prompting a plunge to $39K, which is being currently tested.
Featured Image from Newsweek. Chart from TradingView.com
