After the Bitcoin price fell to $38,000, bargain hunters are expected to fall further

The cryptocurrency market is in another downturn because of Bitcoin (Bitcoin) Before the Federal Open Market Committee (FOMC) meeting, the price fell below $40,000, and officials planned to discuss at the meeting whether interest rates should be raised or kept close to zero.

Although many investors expect BTC to resume its bull market soon and rebound above $40,000, technical analysts are issuing warnings The imminent death cross This may push the price of Bitcoin to $30,000 and below.

Data from Cointelegraph Markets Pro with Transaction view After losing the support of $40,000, Bitcoin bulls were overtaken by sellers, triggering a drop to today’s intraday low of $38,415.

BTC/USDT 4-hour chart. source: Transaction view

Despite the threat of death crosses and major headwinds in the USD 40,000 to USD 42,000 resistance group, the recent Data from Glassnode It shows that the latest batch of bitcoin hodlers does not show signs of selling at the current level, especially for wallets that have been held for more than 3 months.

Bitcoin remains range-bound

ExoAlpha’s managing partner and chief investment officer David Lifchitz said that as the market tried to stabilize after the May 19 sell-off, Bitcoin’s price trend has been hovering between $33,000 and $40,000 for more than three weeks.

The market crash successfully “washed out those speculators who tended to push prices in a’quick and fierce’ way”, resulting in a decline in BTC’s momentum. Now it is “in trouble”, “a fierce battle” is between longs and shorts Brewing” and leading to “increased average trading volume after the crash.”

Lifchitz stated that the bulls are made up of “bargain hunters and institutional investors such as Micro Strategy who use bargaining to increase their holdings”, while the shorts “may be miners who want to sell at the best price available now (ie approximately 40,000 U.S. dollars), so as not to further hit the market and put yourself in trouble.”

From a technical point of view, Lifchitz emphasized that the $42,000 level is an important obstacle to the price of Bitcoin, which may require miners to “exhaust their sales or be convinced that if they let Bitcoin take a breather, they can pay a higher price.” Uninstall” in order to overcome. “

Lifchitz said:

“Bitcoin needs to break through $42,000 to stand out from its trading range, by which time it may quickly rise to the level of $50,000, which coincides with the local bottoms on April 26 and May 12, and then begins to fall on May 15. day.”

Coinbase provides relief for selected altcoins

Daily cryptocurrency market performance. source: Coin 360

With the price of Bitcoin falling below $40,000, altcoins are also under pressure, but some coins have successfully reversed the bearish trend.

The best performing coin of the day was Amp, which rose 44% to a new high of $0.1211. Shiba Inu (SHIB) and Chiliz (CHZ) rose again by 18% after the news of a 20% rise yesterday. Earlier news said that Coinbase Pro will list these two assets.

The overall cryptocurrency market value is now $1.6 trillion, and Bitcoin’s dominance rate is 45.3%.

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