Bitcoin

Why is Bitcoin(BTC) Price Unable to sustain Above the Crucial $40,000?

Written by: Sahana Vibhute

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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Mar 12, 2022

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Highlights

    Bitcoin price is trending above $39,000 for quite a long time and is unable to climb above the $40,000 levels

    A weekly close above $39,000 may ignite a rally above $44,000 else a drop towards $35,00 later $30,000 appears imminent

While the weekly end is approaching very fast, Bitcoin is all set to close the trade on a notable bearish note. The volatility has dropped massively along with the strength of the rally. And hence no significant breakthrough may be expected until the close. If in case, the price receives a notable boost as it did earlier, the bears may jump in to extract the profits. Eventually restricting the BTC price below the $40,000 levels for a long time. 

But why the price is maintaining the upper cap at $40,000 nowadays? Will it ever slice through the levels to hit $44,000 resistance?

The above-mentioned chart showcases the ‘Price-insensitive’ holders accumulating the tokens in recent times. Glassnode mentions the holders of all size wallets accumulated BTC in the current choppy market. Moreover, the accumulation score is 0.3 at the press time. A score of 1 point out towards an institutional or whale accumulation. While a score below 0 denotes the market distribution or a sideways market with notable sell-offs. 

Now when the score is above 0 then the market may not be choppy but slight accumulations are occurring at the moment. However, the accumulations are currency not fueling the price rally as the price maintains a consolidated trend within a very small margin. Moreover, it is swinging within a decisive phase, where-in a wrong move may drag the price lower. 

The price is currently swinging within a parallel channel, moreover, along with the middle bands. Interestingly, the 50-day MA levels also collided with these levels and hence closing the levels above $39,700 may be bullish. On the contrary, if the price fails to hold above $38,000 then the levels towards $35,000 cold are pretty clear. And levels below $35,000 suggests a drop towards $30,000 as predicted by an analyst

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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