After the continued weakness in equities markets, traders faced another day with red markets on April 14.
Cointelegraph Markets Pro and TradingView data show that Bitcoin (BTC), despite holding support above $41,000 at the beginning of April 14, fell below $40,000 by the afternoon session and reached a low of $39550 daily.
BTC/USDT 1-day chart. Source: TradingView
Here are some thoughts from analysts about Bitcoin’s short-term outlook.
Bitcoin must find support at $42,000
Market analyst Rekt Capital posted the following chart, showing how Bitcoin prices moved on the monthly chart. The chart shows what happened after the $47,000 resistance level was removed in September 2021.
BTC/USD 1-month chart. Source: Twitter
The September price action was similar to the current one. It also fell to $41,300, the blue support line. However, it also respects a green lower low.
Rekt Captial said,
History may be repeated as long as BTC maintains a Monthly Close at or above blue.
Decodejar, a crypto analyst and pseudonymous Twitter User, expressed a similar outlook. He posted the following chart, which stated that “Bitcoin must find support above $42,000.”
BTC/USD 1-day chart. Source: Twitter
Longs should be checked in the $40,000 area
Michael van de Poppe, a cryptocurrency analyst, sees the current price action of Bitcoin as “a pretty normal playing field here”, based on the following Twitter chart.
BTC/USD 2-hour chart. Source: Twitter
van de Poppe said,
“The trend break would be the $42,000 barrier, if it is broken first. The $40,000 zone, on the other hand, is where I would want to look for longs.
Related: Bitcoin bulls must reclaim $41K before Friday’s expiry of the $615M BTC options
A bullish uptrend is possible
Analyst On-Chain College provided insight into the long-term outlook of Bitcoin using the percentage of supply held as profit. He posted the following chart, noting that the metric “bounced off” the 62.5% level “three times this year.”
Price of Bitcoin vs. profit percentage Source: Twitter
On-Chain College stated,
“Currently, 69% of the supply are in profit. This metric has been in the red (+95%) for a while. It is when BTC hits the red zone that the potential sell pressure rises.
Another observation that suggests a bullish future of Bitcoin was made by crypto analyst and pseudonymous Twitter User TAnalyst who posted the following chart analyzing “Bitcoin choppiness”.
BTC/USD vs. Bitcoin choppiness index. Source: Twitter
“We have entered the green zone for the third time since 2015. This was the third time it has happened since 2015. The previous two occasions, there was a huge bullish uptrend. …” It is unlikely.
The total cryptocurrency market is now worth $1.857 trillion. Bitcoin’s dominance rate at 40.9%.
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