BTC Price Analysis: Total bloodshed as BTC falls below $40,000, where to next?
3 min readTable of Contents
TL;DR Breakdown
- BTC price analysis highlights BTC’s breakdown past its critical support line at $42,000.
- The latest price breakdown paves the way for further bearish movements.
- If BTC plunges past the 200 Simple Moving Average, the king crypto will incur enormous losses pushing it towards the $30,000 region.
At the time of writing, the number one cryptocurrency is in trouble after plunging below the $40,000 mark during today’s early morning trading session. According to a near-term technical perspective, BTC’s current downward trend appears unstoppable. However, the 200 Simple Moving Average on the daily chart could be BTC’s savior going through ongoing circumstances.
BTC Price Analysis: General price overview
Earlier today, BTC registered a new 3.5 month low, following China’s latest decision to ban all transactions involving cryptocurrencies. The latest price dip is the most extensive price breakdown of the current bearish leg. The number one cryptocurrency recorded a low of about $38,500 in today’s early morning trading session, marking a35 percent price decline from the recent ATH of $64,880. Such a price decline was last seen on February 8.
At present, the 200 Simple Moving Average (SMA) at $31,602.24 appears to be the best support line for the bleeding crypto asset. Defending and safeguarding this critical support remains critical to avoiding another massive bearish price trend. The last time the 200 Simple Moving Average was compromised as a support line was in March 2020, when the bellwether crypto suddenly plummeted to $3,800.
Meanwhile, BTC is exchanging hands at around $40,359 at the time of writing. On looking at the near-term technical indicators, the route currently with the least resistance for BTC appears to be the downside. With the Relative Strength Index (RSI) setting camp at the oversold area, there are no signs of early recovery for BTC. At present, investors should tighten their belts and prepare for a further downward stretch.
BTC price movement in the past 24 hours
According to BTC’s price movement in the past 24-hours, it is evident that the number one crypto asset has plunged to level 26 of the Relative Strength Index. This implies that BTC has degenerated into the oversold area of the market. According to RSI analysis, BTC’s current negative price movement is nearing bearish fatigue. Usually, bulls tend to emerge whenever a crypto asset hits deep levels of the oversold RSI areas of the market. Additionally, BTC’s price is also currently below the 20 percent range of the daily stochastic. This means that the crypto is still painting a bearish picture while in the oversold region.
BTC 4-hour chart
According to the Moving Average Convergence Divergence (MACD) indicator on the 4-hour chart, BTC’s bearish narrative is accurate, and it is here to stay. For instance, the MACD blue line moved below the 0.00 mean line a while back, and it is now exploring the depths of the negative area.
Such a move has not been seen since the March 2020 market crash. It is safe to say that the bearish trend is unstoppable at present unless the 200 Simple Moving Average unfolds as a solid support line. At present, investors should hold back until the crypto coin settles above the $40,000 region to go all-in. A decisive close above $40,000 could initiate BTC’s recovery.
Conclusion
One of BTC’s misfortunes is China’s decision to ban the use of cryptocurrencies in the vast Asian country. Another factor affecting the price of the crypto is the recent decision by Tesla to end their partnership with BTC.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
