Bitcoin falls to $37.5k as the $39k support could not hold the price. And, there has been a rejection from the $40k range a while back. For now, the price has jumped back to the $38.5k level, but the trendline is still bearish. There is a chance that we might correct below $37.5k if the price retests the trendline and is unable to break through like in previous times.
Bitcoin could fall lower as it corrects to $37.5k
As you can see from the above 1-hour Bitcoin chart, even a while back, the price retested the trendline and fell back. This could trigger a further correction, or we might see bulls try again and probably breakthrough this time. The markets are really dodgy, and there is little to no bullish sentiment. Plus, there has been a report of the feds increasing interest rates this week which could result in further losses.
The $37.5k support is important; as you can see, it has provided support many times. If it breaks, we could easily fall back to $36k or even $35k if that doesn’t hold. On the upside, the EMA 200 is near the $39.5k level, which is also a strong resistance. The trendline that is forming now is also near the MA 50, making it even harder to break.
Upside
If the price of Bitcoin moves above the $40.5k level, there could be a chance that we retest the $43.5k and $45k resistances. On breaking the $45k resistance which has been a strong deterrent to the upward movement of Bitcoin, it is plausible that the price will rise to $50k quite rapidly. But with the current situation, Bitcoin may be stuck below $40k for longer.
Buy the dip?
If you are planning to buy the dip, wait for a little while and see how the markets react to the feds increasing the interest rates. There is a chance that they will announce multiple hikes this year, and this could lead to a correction. In that case, the dip will be even more attractive. So, hold off for now.
Could Bitcoin move lower as it falls to $37.5k? And what are the chances that the price moves when the feds announce the interest rates hike? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Abra CEO predicts Ethereum’s price target to be $40,000
