Bitcoin’s decline continues, with the price falling below $40K. Although this was a key hold point for bulls, the bears were able to drag the digital asset down below the critical support level. Since then it has fallen a lot. It is possible for the market to reverse at this stage, but it’s also possible that digital assets continue to fall, possibly to $34K.
Bitcoin could reach $34K
New data from Delphi Digital highlights a potential trend for Bitcoin, according to a report. This digital asset, which saw a volatile February month, has not shown any signs of slowing. It has seen its price drop to $33K, and it reached a peak of $45K. BTC is trending at the middle of this range, but neither one of those levels has held.
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While fluctuations can be part of the stock market which can make it a great investment opportunity, this could pose problems for bitcoin. Bitcoin is as susceptible to a big swing downwards as it is upwards.
BTC loses support above $40K | Source: Delphi Digital
Delphi Digital points out that crypto markets remain volatile through February, and are still range bound. Bitcoin is expected to revert back to the range lows around $34K after it has broken through the $38.5K level of support. On the weekly chart, the wicks to the update are showing that it is currently a seller’s market, which could lead to more downtrends in the near future.
It’s more obvious to struggle
Since the December crash, bitcoin has seen sell pressure. Delphi says that this has been more evident in the market sentiment, as well as the dips that have followed the sell-offs. Bitcoin is trying to overcome the multi-month-old sell pressure.
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Also, bitcoin continues to stall over the last two weeks according to the report. It has not been able to recover any of its weekly support structures or the midpoint in the yearly range. These are very critical levels for digital assets that plan to make a recovery.
Source : BTCUSD at TradingView.com| Source: BTCUSD on TradingView.com
In order to secure another bullish structure, cryptocurrencies must be above $40K-$41K in order to recover from the recent lows. The $34K stop mark is likely to be reached as this structure failed to hold and broke below the $38.5K threshold. However, this does not necessarily mean that it forms support. Bears will keep pulling the asset lower.
Featured Image from CNBC. Charts from Delphi Digital. TradingView.com.