Price Analysis

Bitcoin price to Slide Down to $41,500 by the End of the Week, Has the Bearish Trend Initiated?

Written by: Sahana Vibhute

Written by right arrow

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.

  • author facebook
  • author twitter
  • linkedin

Apr 8, 2022

news-image
Highlights

    Bitcoin price yet again showcased the possibilities of shedding huge gains by sliding close to $40,000, slicing through the crucial support at $42,000

    No clear possibility of a strong rebound is witnessed if in case the price visits the lower support as the bulls appear to be passive at the moment

It appears that Bitcoin bears nowadays are busy trapping the bulls at a higher price. As the price after a slight rise falls down drastically and takes significant recovery time. Now when the BTC price was very close to hitting $50,000, the bears dragged the price to as low as $42,800. No doubt the bulls quickly jumped in to hold the price tight, but the attempts may go in vain as Bitcoin is now primed to slide down below $40,500 very soon. 

Bitcoin (BTC) Price Analysis

The flagship crypto ever since the beginning of the year 2022, has been notably volatile that compelling the price to hover in either of the directions. However, despite decent volatility, the price failed to hit $50,000 and also secure levels above $48,000. And hence it may also be said that the BTC price was trending within a bearish trend and displaying fake breakouts at regular intervals. Currently, Bitcoin is hovering in a very crucial phase where-in a strong breakdown towards $40,000 is pretty much possible. 

  • Bitcoin after consolidating hard within $46,800 and $45,000 for quite a long time dropped hard slicing through the crucial support at $44,700
  • After bottoming hard at $42,800, the price flipped but failed to ignite a strong uptrend and hence began consolidating within minor ranges
  • Hence forming a bearish flag, the price is attempting a breakout, but woefully, the lower levels close to $40,700 may act as the target once the price releases itself from the pattern
  • However, $42,000 is yet another barrier that compelled the price to reverse its trend on hitting these levels hence a minor possibility of a flip may be expected but with strong downward pressure, the price may slice through these levels too. 

Bitcoin (BTC) Technical Analysis 

Technical Indicators

IndicatorValue(Short-Term)Action (Short-Term)
Relative Strength Index(ADX)49.08Neutral
MACD-92.7Sell
Average Directional Index(ADX)15.69Neutral
Average True Range(ATR)222.56Less Volatility
Bull-Bear Power-8.29Sell

Pivot Levels

Pivot LevelsValue (Short-Term)
Moving Average(MA) – 50$43,868.30
Moving Average (MA) – 200$45,618.20
Resistance$44,710
Support$42,000

Bitcoin price may consolidate for a while as no particular sign of a flip or rebound with strong bullish momentum is seen. The indicators are also pretty neutral indicating an accumulation phase. Currently, the bears are dominating the rally and interestingly, the long term forecast also manifests a similar trend. And hence once the BTC price breaks down the immediate support at $42,000, the bear may become proactive to drag the price closer to $40,000. 

Show More

Was this writing helpful?

dislikeimage No myImage Yes

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.

Related Articles

Back to top button