Extreme fear reigns once more in the cryptocurrency community. After Bitcoin (BTC), which traded below $40,000, another day of trading was faced by the currency. The United States is currently facing the largest Consumer Price Index (CPI), since 1981.
Crypto Fear & Greed Index. Source: Alternative.me
Cointelegraph Markets Pro and TradingView data show that an attempt to rally above $40,000 in the early morning ran into resistance at $40.650 and that BTC price ultimately fell below $39,000.
BTC/USDT 1-day chart. Source: TradingView
Below is a list of what analysts have to say about Bitcoin’s current status and what might happen next as financial markets struggle with increasing uncertainty.
Bitcoin is simply retesting a major S/R area
According to crypto analyst and pseudonymous user on Twitter, ‘Credible Cyber’, the current price action in Bitcoin is seen as a retest zone of major support and resistance (S/R). He posted the following chart that shows the numerous retests of the level dating back to 2020.
BTC/USD 1-week chart. Source: Twitter
Credible Crypto says that both the last red and middle circles are examples of intra-week movement that were above or below the weekly level. “But it doesn’t mean anything without a close to verify.”
Credible Crypto claimed
“Give me a close under BLUE, and I’ll change the tune. But for now, there is no reason.”
Analysts predict a slow recovery
Glassnode’s latest weekly report discussed the on-chain behavior and profit-taking of Bitcoin investors. It noted that investors have taken a small amount of profits following the BTC breakout from its multi-month consolidation range.
Glassnode reports that the market has “received approximately 13,300 BTC in profit each day since February mid-February”. While this is not “historically extreme,” however, it appears to be “sufficient headwinds for prices.”
Bitcoin made profit. Source: Glassnode
Overall, Bitcoin’s recent recovery has been slow and the market is still waiting for a major catalyst that will bring new momentum to the market.
“Especially when it comes to on-chain activity metrics such as transaction counts and active user, the recovery has so far been rather lackluster, which continues to indicate that Bitcoin is a HODLer dominated marketplace with few new investors.”
Related: Ethereum price “bullish triangle” puts 4-year highs against Bitcoin within reach
“MEGA PUMP” is on the horizon
Crypto trader “BTCfuel” highlighted a bullish narrative and posted the following chart, which highlights the possibility of a Bitcoin mega-pump.
BTC/USDT 1-day chart. Source: Twitter
“The 2022 Bitcoin correction looks very similar to 2021 when you look at the RSI. Strong BULLISH move imminent.”
The total cryptocurrency market is now worth $1.850 trillion, and Bitcoin’s dominance rate of 40.9%.
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