The cryptocurrency market remains turbulent. Bitcoin (BTC) suffered its worst day in three months with BTC/USD trading nearly 9% lower before closing the day. BTC had rallied above $40,000 during the prior day, regaining some ground after falling in four of the last seven days. Investors continue to weigh in on cryptocurrencies’ high correlation with the tech sector to forecast Bitcoin prices above or below $40,000. Throughout 2022, Bitcoin has been drifting along the Pivot Point near $40,000, attempting to hit $50,000 or fall to $30,000. At the time of analysis, BTC/USD pair is trading around $36,500 after reaching intraday lows at $35,568. According to a CryptoQuant post by an expert, BTC Netflow has recently seen a strong negative value. The “all exchanges Netflow” is a metric that tracks the total amount of Bitcoin entering and departing centralized exchange wallets. As markets hopes for Q2/22 bullish trend wavers early, Bitcoin Netflow recorded a large negative value recently, which might be bullish for the crypto in the near future per the on-chain data.
Key Levels
Resistance Levels: $45,000, $42,000, $40,000
Support Levels: $35,000, $33,000, $30,000
BTC is on track to end the day at a loss. The declines follow a brief increase to $40,038 during the prior day. Following today’s drop to $35,568, the BTC/USD might aim to recover. In oversold levels near 40, the RSI suggests that bears may take a break to allow bulls to pass so that the pair might go through a near-term pullback
However, gains could be stopped again near the $40,000 barrier ahead of the MA 50 ($42,000), which could act as key resistance. A move higher might take the bulls to the MA 200 at $47,000, setting up a retest of the $48,124 yearly high. Alternatively, if the BTC/USD pair continues to fall, the market will drop below $35,000, well ahead of the yearly low at $32,933.
BTC/USD 4-Hour ChartFollowing the latest sell-off, BTC/USD remains unsettled, and the price might plunge to $35,000 lows. With the RSI at the oversold range, the price movement appears to be rather feeble at the time. As a result, BTC prices might fail to rebound. A test of the minor support at $35,000 could halt the current falls.
A break below this horizontal support might send the price of BTC to yearly lows of $34,322 on Feb. 24 and $32,933 on Jan. 24. To emphasize expected bulls’ re-entry, the 4-hour MA 50 barrier at $38,650 must be cleared to the upside. The MA 200 at $41,000, which is above this line, could put a stop to the bullish trend.
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