Bitcoin has fallen from the $45,000 resistance straight below $40,000. This is not something we often see and shows how the bears were in solid control. But an important thing here was that the price held firm at $38,500, and markets were also oversold. So, the question is can we expect a Bitcoin price jump from here on? Or will the price break lower and retest the $37,000 or $36,000 level.
Bitcoin’s price acti0n
After crashing from $45,000, the price bottomed out at $38,500 and has been consolidating for over 24 hours now. At the time of writing this article, it is testing a significant resistance of $39,500, and in case the price moves up, we could see it retesting $40,000. The last rally was a consequence of speculation that a lot of Russians are investing (or going to) in Bitcoin because of the was situation. But a Chainalysis report showed that in the last 1 week, the trading volume of Russian exchanges had dropped more than 50%.
At present, Russia has also been banned from the SWIFT banking system, but it hasn’t affected the crypto volume of our country to too much extent. Yes, with time, we can expect this to increase, and ultimately Russian citizens will have to depend on Bitcoin as the value of the Ruble has fallen dramatically. Even Brian Armstrong, CEO of Coinbase, said that Bitcoin is the last lifeline for Russian citizens.
Price needs to move above $40,000 at least
To be bullish, we need Bitcoin to move above $40,000 and stay that way. Ultimately, the real bullish move would be if the price is able to break $45k—from where it has already been rejected twice and pushed below $40k. A rejection from $40,000 now could lead Bitcoin to retest lower levels around $36,000. It seems a lot of investors are waiting to buy at that level, so it’s possible that the price reaches there for a brief while.
If you are planning to buy right now, it’s best to hold off for a while and see how the $40,000 resistance plays out. In case the level is broken and Bitcoin turns it to support again, taking a position would be good.
Can we expect a Bitcoin price jump from here on because it is already oversold? Or do you think that the price will first reach lower levels? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: US Lawmakers are working on crypto policy for Institutional Investors, says Kevin O’Leary.
