The crypto markets are all going down, and in the short term, we can say that things look bearish. The price of Bitcoin slid below $47k yesterday, and we made a low of $45.7k. All other coins saw greater losses, with ETH bottoming out at $3,670 and most other alts seeing double-digit losses. It is clear that unless Bitcoin moves back above $50.5k and holds ground, we are bearish, and it may even slide to $40k.
Bitcoin price action
At present, we are trading above $46.5k, and if the price is able to move past $47k and reclaim that support, we might retest $50k. On the other hand, and the more likely scenario, we could be looking at $42k-$43k next and even $40k. This is because Bitcoin is unable to get enough volume to break past $50.5k, and in such cases, the most likely result is testing lower and trying again with some momentum.
Things look bleak for Bitcoin at the moment as it seems difficult for Bitcoin to break $53k where we have the 20-day moving average, and even higher there is the 50-day moving average. Unless the price crosses the 20-day MA, we might not be going back higher. Rejections from this level will most likely push back the prices below $50k, yes, unless $50.5k holds, which seems unlikely based on previous movements.
In any way, we are not going to see $100k by the end of the year, and all models that predicted that have gone to waste. Well, I can’t blame them as predicting the price of such a volatile asset is near to impossible.
$4ok might be near
The head and shoulders pattern is very common for Bitcoin, and in the daily chart, it seems to be forming the same. If the formation of this pattern is successful, then we might be looking at $41.5k. And then Bitcoin may slide to $40k to test the last important support in this price range. The only thing to be bullish about is that there is extreme fear in the market, and overleveraged longs have been wiped out from the market.
What are your thoughts as the current price action suggests that Bitcoin may slide to $40k? And do you think that the price may go even lower than that? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Keanu Reeves owns crypto but is skeptical about NFTs.