Bitcoin breaks below $39k after getting rejected from $45k, and the price continuing to correct without holding at any support. The recent BTC rally was fab, but the bullish sentiment didn’t last long as bears took over with the rejection from $45k like last time. I was expecting the price to retest $42k and bounce back, but that didn’t happen, and even the critical $40k level also broke. So, at this point, I am not super bullish for the short term.
Bitcoin trends look bearish
There has recently been a major options expiry which could have been the reason for the correction. The situation between Russia and Ukraine could also be a reason. While many analysts predicted that this was the reason for the rally in the first place, things have continued to get worse. A fire has broken out in a nuclear facility in Ukraine, and in case of an explosion, the entire Europe will suffer.
Even the European stock market has taken a hit and is around 17% below its all-time highs. The correction is much more than the S&P 500 in the US. Inflation also continues to go up in G7 countries, and the entire economy is a mess. It is difficult to say whether the price of Bitcoin will see a jump here because it is already oversold.
Levels to watch out for
As Bitcoin breaks below $39k, it is possible that the price will retest $38k before moving up. In case there is a jump, the bulls could try to break $40k again. The range of $39.5k-$40.5k will be essential to break, and in case it happens, a solid jump to $42k is likely like last time. Then we have the $43.1k level, which was important support and now resistance for Bitcoin.
On the daily chart, we have already broken below the EMA 20 and MA50 levels, and it will be important to get back up. Analysts have been predicting that Bitcoin will be bullish if it stays above $40k and bearish otherwise.
At this point, it would be a good idea to avoid buying alts as they suffer the most in volatile situations. And for Bitcoin continuing to average your holdings is best. What are your thoughts on the current market situation? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
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