After the rally on Wednesday, Bitcoin has again crashed below $40k. It has recently made a low of $38.2k and has since recovered a bit. Currently, the price is at $38.7k, and soon it will be testing a trendline resistance of around $39k. If the price gets rejected at this trendline again, Bitcoin could extend losses and retest lower levels. It will be essential to keep an eye on the $37k and $36.5k support in such a case.
Bitcoin could extend losses
After the fall from $42k on Thursday, Bitcoin stabilized around $39k for a while. In fact, it even tested the $40k range once again but got rejected badly and pushed the price below $39k. This time Bitcoin had an even tougher time because of the trendline resistance, the EMA 200, and the mental support of $40k. For now, it isn’t easy to picture the price of Bitcoin moving above $39.5k (100-hourly SMA) to retest $40k once again.
In case the trendline actually breaks and we move up, then there could be some possibility of retesting $40k. The next resistance would be at $39.5k and $40k. If we are able to break these levels, the $42.5k level where the price was rejected last time will be important. On the lower side, which I think is much more likely for BTC to visit, $37.2k will be necessary support. After that, $36.5k will be a critical level.
Stay away from alts for now
As you see in the last few weeks, the price of Bitcoin has been very volatile. Yes, it is more or less always like this, but recently there have been pumps and dumps of nearly 10% very frequently. In these cases, coins that suffer the most are alts. Some of them are doing well, like Luna, but in most cases, they are bleeding. In case you are planning to buy the dip, don’t go all in and save some funds. There is a good chance that BTC will retest $35k before moving up, and that will be the point when alt prices will be at their lowest.
What are your thoughts as Bitcoin breaks below $39k and shows signs that it could extend losses? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.