Bitcoin’s current position is down and it has dropped below $35,000 since the writing of this piece. Markets have suffered a severe beating even before trading opens for the day as the Ukraine-Russia crisis continues. Reports suggest that the Russians are already trying to invade Ukraine. This is an important point for bitcoin, as it could well cement its place in the bear market if there’s no recovery.
Bitcoin Should Have a Minimum of $36,000
Justin Bennett is a Crypto Analyst and recently published his Weekly Newsletter. He maps the move of this pioneer Digital Asset. Bennett believes that $36,000 is a crucial point for bulls to keep above. The digital asset is now below that point. What happens then if they aren’t able to restore the value above?
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Bitcoin’s current state is far from constructive due to the many dips that have rocked it. Although it had struggled to reach $39,000, the asset eventually gave in to enormous sell pressure and was pushed below its support.
Next came the $36,000 support region. The digital asset is now below that level since the news about the Russian invasion. Bennett says the next was $35,000. Below that is the range of $30,000 for four months.
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Bulls need to hold above $36,000 this week in order for the asset to move closer towards $39,000. This would allow the asset to reach the $42,000-$46,000 mark. This seems highly unlikely.
“As I’ve mentioned a few times this week, Bitcoin needs to get back above $39,600 on a daily closing basis to turn constructive again,” said Bennett. “So far, buyers haven’t been able to do that.”
Ethereum
This week, Bitcoin was not the only currency to suffer. Ethereum and the other altcoins are actually taking most of the blame, seeing daily double-digit declines. Ethereum, which lost its ground above $3,000 in the last few months continues to slide on charts. It is now at $2,300.
Bennett stated in his analysis that a daily low of $2,570 could lead to the digital asset falling towards $2,300. That was Wednesday. The early hours on Thursday saw ETH fall towards this point.
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Alternately, the cryptocurrency could have closed above $2900 yesterday to make it $3,100. Crypto analyst says that the cryptocurrency remains on very unstable ground without this daily high close.
Ethereum trades below its simple moving average of 50 days. As sellers now control the market, this poses a serious threat to its value. Digital assets could touch $2,000 as the selling continues.
Featured Image from FX Empire chart on TradingView.com