Here are the levels to watch when Bitcoin is “nearly hanging” at $40,000.
Bitcoin saw its first major test at $40,000 in a couple of weeks this morning (UTC), but which price zone are traders watching next?
Whether long-term or short-term, the answer is simple: the range is maintained.
Bitcoin wobbles after ‘moment of truth’
Due to macroeconomic pressures, BTC saw a moderate sell-off on Feb. 17 that lasted through Friday, hitting a local low of $40,330, according to data from TradingView.
An upward move has taken the pair above $41,000 but worries remain about further challenges to bulls resolve.
BTC/USD chart 4 hours | Source: TradingView
A popular bounce zone in the event of a break below is currently $38,000, and when a local bottom was spotted this morning, popular Twitter account Credible Crypto reiterated the need to hold that figure going forward.
“The moment of truth. Bottom setup: If our bottom is $32,000, downside will be limited to the green below to form a higher low. Again, this is my low and I expect to hold this zone and retest monthly resistance,” he said. summary along with a forecast chart.
BTC/USD Chart | Source: Credible Crypto
On the other hand, some people are less than enthusiastic about this prospect. For example, popular trader Crypto Ed is concerned even as the price tests $40,000.
“Thousands of pounds hanging by a hair at $40,000 feels like a miracle after yesterday’s surprise negative move,” he said. to speak.
Meanwhile, the structure of the derivatives market reinforces the macro floor by $32,000. As noted by analyst Dylan LeClair, by the time it reached this level in January, bidders were in, providing an additional decision line for price stability.
“The speculative atmosphere in the BTC derivatives market has essentially completely disappeared, with bidders in the spot market holding $33,000 in early January,” he said in a row tweets about context.
Honestly, Fam, if I were to go by the weekly chart, I’d say pack your bags, it’s over, but…
we will see pic.twitter.com/95Z9cObaS3
— muro — won’t DM you (@MuroCrypto) February 17, 2022
“Honestly, if I had to judge by that diagram Every week I would say pack your things, everything completed beautiful, but …. let’s keep monitor”.
While some worry for the longer term, LeClair argues that nothing has really changed as the chart shrinks and Bitcoin stays on track for the four-year halving cycle.
“Aside from the macro environment, Bitcoin monetization continues. For all the uncertainty, Bitcoin is almost an order of magnitude higher than it was last cycle. Don’t forget to watch the whole scene,” he concluded.
As expected, this early-morning bottom filled the CME bitcoin futures gap left after breaking out of the $30,000-$40,000 corridor earlier in the month.
CME Bitcoin Futures 1-Day Candlestick Chart | Source: TradingView
The price debate was “mostly signal Noise”
Fidelity Asset Management’s global macro director Jurrien Timmer has observed the ups and downs of the past year phone call Again, focus on the growth of the network over the years rather than price analysis.
“Bitcoin has been in an up and down trading range between $30k and $65k for almost a year. The up or down debate remains a favorite of many, but it’s mostly signal noise. For Bitcoin, what counts is the network.”
BTC/USD Chart | Source: Jurrien Timmer
For Timmer, Bitcoin’s target price is on a similar regression curve to Apple’s trajectory from the 1990s to the present.
So it may be a much slower path to $1M and much further than many hope, but at the same time, the health of the network fundamentals and adoption should be the primary concern.
Bitcoin Demand Pattern Chart | Source: Jurrien Timmer
Bitcoin hashrate and difficulty are now at an all-time high.
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