Bitcoin has slipped below $40,000 after enjoying a 43% rally.
Transaction history suggests that BTC would have a difficult time reclaiming this level as support.
If it does reclaim $40,000, $44,000 will become an imminent price target.
Share this article
The overall sentiment among cryptocurrency enthusiasts is back to “neutral” after the significant gains Bitcoin has posted in the last 12 days. Despite the renewed optimism, BTC needs to reclaim a crucial price level as support to advance further.
Bitcoin Must Reclaim $40,000
Bitcoin has enjoyed an impressive 43% rally over the past two weeks, gaining over nearly 13,000 points in market value. Its price went from a low of $29,800 on Jul. 21 to hitting a high of $42,600 over the weekend. The bullish impulse was forecasted by a descending triangle pattern that developed on BTC’s daily chart.
Although the technical formation projected a 40.5% advance from the breakout point at $32,600 towards the 200-day moving average at around $46,000, the $40,000 resistance zone has proven challenging to break through.
The leading cryptocurrency has retraced by more than 8.6% over the last few hours, dropping below the 100-day moving average at $39,900. Now, Bitcoin must reclaim this crucial support level to continue its upward advance.
IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model reveals that over 750,000 addresses have previously purchased nearly 550,000 BTC at a price of around $40,000. Such a large concentration of addresses “Out of the Money” at this level suggests that any signs of price weakness could encourage them to exit their positions to avoid further losses.
Under such unique circumstances, a sell-off would likely push Bitcoin towards the next critical area of support that sits at $36,770 based on transaction history.
Nonetheless, a spike in buying pressure that allows Bitcoin to reclaim $40,000 as support could lead to an upswing towards $44,000. The IOMAP model shows no critical supply walls between these price points, crediting the optimistic outlook.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Bitcoin and Ethereum Flash Sell Signals After Major Gains
Bitcoin and Ethereum continue to make higher highs, but one technical indicator suggests that a correction could be coming. Bitcoin May Pump Before the Dump Bitcoin and Ethereum may be…
What is Impermanent Loss and How can you avoid it?
DeFi has given traders and investors new opportunities to earn on their crypto holdings. One of these ways is by providing liquidity to the Automated Market Makers (AMMs). Instead of holding assets,…
Bitcoin Hovering Below $40,000 Ahead of Fed Meeting
Bitcoin has taken an attempt to break $40,000 for the second time this week, with the Fed’s FOMC policy meeting acting as a source of uncertainty. Bitcoin’s Positive Consolidation around…
Bitcoin Remains Bullish After Shaking on Amazon Rumors
Volatility has struck Bitcoin after a prolonged stagnation period. Although the recent price action was based on a rumor, on-chain data shows that Bitcoin has the buying pressure behind it…