It was from February 4, 2022, that the bulls had been trying to keep Bitcoin’s (BTC) head high by demonstrating high buying power. It was extremely critical for the bulls to keep Bitcoin over the $40k per BTC benchmark, which they kept up for a long time, but finally gave up.
The data for Bitcoin shows that on February 4, 2022, Bitcoin climbed the $40k per BTC ladder after a long battle against the bears. From that point until yesterday, Bitcoin was hovering over the $40k per BTC mark.
Despite the efforts from the investors in keeping Bitcoin’s price over $40k, the bears took charge, and as of now, Bitcoin is below $40k. At the time of writing, the unit price of Bitcoin is at $39,820.66 and it has come down to this level having observed a 0.88% plummet in the past 24-hours.
After more than two weeks, Bitcoin is back in the same negative territory where it doesn’t have much support from investors. Therefore, Bitcoin may find it difficult to make a recovery anytime soon.
Given the current market situation of Bitcoin, the sentiments of the investors have turned negative. This means that the investors are now planning to sell, or may prefer the idea of selling Bitcoin in the process.
At the moment, the preferences of the investors are leaning towards “strong sell” sentiments. This means that there are high chances for the price of Bitcoin to experience a dip than experience a rise.
In the upcoming days, the investors may continue selling Bitcoin that may bring Bitcoin down to $37,085.22. The RSI is also moving within the negative territory on line number 42.93.
As the pressure keeps building, Bitcoin may plunge to its second support checkpoint, represented by $34,033.54. If the bears keep inflicting more damage, then Bitcoin may plunge to its third support mark of $31,592.71.
On the other hand, the bulls may try to regain the $40k plus glory Bitcoin had retained for over two weeks. The investors may try and push Bitcoin over the 20-day SMA ($41,596.71).
Going forward, the investors may attempt to push Bitcoin over the first resistance mark of $43,228.45. The investors may increase their buying power to push Bitcoin up to 100-day EMA ($45,120.53). If Bitcoin achieves the 100-day EMA, it would be possible for bulls to push it up to the second resistance mark of $46,479.37.
Then the investors would gain enough confidence in pushing its price all the way up to the third resistance mark of $49,106.37. If the investors exert more buying power, then Bitcoin may grow up to 200-day SMA ($49,423.96).