Bitcoin price may “check down” as volume declines and macro issues remain lurking

The Bitcoin sell-off appears to be on hold despite the US imposing new sanctions on Russia on February 22nd.

Data from TradingView shows that bitcoin price continues to fluctuate slightly below $38,000 in what some analysts have identified as significant areas of support and resistance.

BTC/USDT 1-day chart | Source: TradingView

Here’s a closer look at what analysts are saying about the Bitcoin price and what levels to watch in the near term.

25% of companies have losses

On-chain data syndication platform Glassnode released the chart below analyzing companies’ profit percentages, and the analysts concluded that “the percentage of profitable on-chain companies ranged between approximately 65.78% and 76.7% of the network fluctuates”.

Profitable Percentage of Businesses Holding Bitcoin | Source: Glassnode

As shown in the chart above, “more than a quarter of all network entities are currently losing money at their site,” while “approximately 10.9% of networks have a cost base between $33,500 and $44,600.”

“If the market fails to establish a sustained uptrend, these users are more likely to become another source of selling pressure, especially when prices are trading below their cost base.”

Bitcoin Price May Continue to ‘Explore Lower Zones’

Cryptocurrency research firm Delphi Digital has provided more details on the difficulties BTC is facing. Previously, they noted that Bitcoin is “entering daily, weekly, and monthly resistance areas.”

Based on this resistance confluence, Delphi Digital suggests that “$45,000 is a reasonable place to expect profit/risk reduction due to the confluence of resistance areas and the speed and intensity of action away from recent lows”. As it turns out, the price crashed right after reaching this level.

BTC/USD 12 hour chart | Source: Delphi Digital

According to Delphi Digital, bitcoin price has “stabilized for the past 2 weeks” and has yet to “regain any weekly support structure or the midpoint of the yearly range.”

“If $40,000 fails to hold, the next market structure will be in the $38,500 region. If you lose this level, you can expect the price to retrace the previous low, possibly significantly lower.”

Foraging whales accumulate less than $38,000

On-chain analytics firm Whalemap, on the other hand, also offers a glimpse into bitcoin whale movements. They released the chart below, which highlights the areas where BTC wallets have seen major inflows over the past 4 months.

Big bitcoin wallet inflow | Source: whale map

“Cetacean areas of interest are now very well defined. $34,000 waiting under 36,000-37,000. Macro trend reversal above $48,500.”

Possible areas of resistance in the chart above are $40,000, $43,500, $46,500 and the key resistance at $48,500.

A final bit of hope for BTC bulls was offered by Bloomberg’s senior commodities strategist, Mike McGlone, in the following tweet, which showed Bitcoin is currently selling well below its “annual average since the 2020 and 2018 lows.”

https://twitter.com/mikemcglone11/status/1496193529965649928?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener
“Around 20% below the 50-week MA, bitcoin is approaching a very cold level that usually leads to good price support. Our image shows the largest discount for cryptocurrencies compared to the yearly average since the 2020 and 2018 lows. On Feb. 22, DowJones was close to matching the same level.”

The total crypto market cap is currently $1.813 trillion and Bitcoin’s dominance is 39.9%.

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