Bears control Bitcoin price, but traders say the $40K zone is still good ‘for longs’

Merchants confronted one other day of crimson markets on April 14 after the weak spot in equities markets continued to place a damper on crypto costs. 

Knowledge from Cointelegraph Markets Professional and TradingView exhibits that after holding onto help above $41,000 within the early hours of April 14, the value of Bitcoin (BTC) was slammed again beneath $40,000 within the afternoon session and hit a each day low of $39,550.

BTC/USDT 1-day chart. Supply: TradingView

Right here’s a have a look at what analysts are saying concerning the short-term outlook for Bitcoin.

Bitcoin wants to seek out help above $42,000

Bitcoin’s value motion on the month-to-month chart was mentioned by markets analyst and pseudonymous Twitter consumer Rekt Capital, who posted the next chart exhibiting what occurred when the $47,000 resistance degree was rejected in September 2021.

BTC/USD 1-month chart. Supply: Twitter

Just like the present value motion, the transfer in September additionally dropped to the blue help line at $41,300 “and in addition revered a inexperienced greater low.”

Rekt Captial mentioned,

“So long as BTC performs a Month-to-month Shut above blue, historical past could repeat.”

An identical outlook was expressed by crypto analyst and pseudonymous Twitter consumer Decodejar, who posted the next chart stating, “Bitcoin wants to seek out help above $42,000.”

BTC/USD 1-day chart. Supply: Twitter

Examine for longs within the $40,000 zone

Cryptocurrency analyst Michaël van de Poppe sees the present value motion for Bitcoin as “a fairly commonplace enjoying subject right here” based mostly on the next chart posted on Twitter.

BTC/USD 2-hour chart. Supply: Twitter

van de Poppe mentioned,

“Trying on the $42,000 barrier to interrupt first, that may be a pattern break. In any other case, the $40,000 zone is the realm the place I might wish to verify for longs.”

Associated: Bitcoin bulls have to reclaim $41K forward of Friday’s $615M BTC choices expiry

The potential for a bullish uptrend

Perception into the long-term outlook for Bitcoin based mostly on the share of provide held in revenue was explored by analyst On-Chain Faculty, who posted the next chart noting that the metric had “bounced off the ~62.5% degree 3 times this yr.”

Bitcoin value vs. % of provide in revenue. Supply: Twitter

On-Chain Faculty mentioned,

“Presently, over 69% of the availability is in revenue. Traditionally, when this metric hits the crimson zone (+95%) BTC is ‘overheated’ and the potential promote stress is excessive.”

A second commentary suggesting a bullish future for BTC was talked about by crypto analyst and pseudonymous Twitter consumer TAnalyst, who posted the next chart analyzing the “Bitcoin choppiness index.”

BTC/USD vs. the Bitcoin choppiness index. Supply: Twitter

TAnalyst mentioned,

“For the third time since 2015, we’ve got reached the inexperienced zone. The final two occasions this occurred, a large bullish uptrend adopted. In all probability nothing…”

The general cryptocurrency market cap now stands at $1.857 trillion and Bitcoin’s dominance price is 40.9%.

The views and opinions expressed listed here are solely these of the writer and don’t essentially mirror the views of Each funding and buying and selling transfer entails danger, you need to conduct your personal analysis when making a call.