Bitcoin in the intensified bearish trend

Bitcoin chart analysis

The price of Bitcoin continues to plummet, falling below the psychological $ 40,000. The price of Bitcoin is now at $ 38075, the place of the previous subscription from August 2021. Today’s daily candlestick is very bearish, and today’s decline is 6.58%. A possible reason for this fall in prices is Russia, the stock market, and the liquidation of futures contracts. The crypto market has fallen below $ 2 trillion after today’s drop in Bitcoin to $ 38,000. After reaching $ 43,500 yesterday, Bitcoin fell 12 percent to $ 38,235 – last seen in August 2021. Major altcoins, including Ethereum and Solana, were also hit, causing a cascade of liquidations of about $ 716 million in the futures market7.28 and the current XNUMX percentage decline in the total market capitalization of cryptocurrencies.

Bullish scenario:

• For now, there are no signs of a bullish trend, and we need a new positive consolidation that would stop the further bearish decline.
• We need to go back above the $ 40,000 previous support zone.
• Then the essential resistance zone is at $ 44,000, with additional resistance to the upper trend line.
• If the price succeeds in that, we get the support of the MA20 moving average, which would mitigate this current decline.
• Next, above the resistance zone is at $ 46,000 with additional resistance in the MA50 moving average.
• The MA200 is in the $ 49,000 zone, and it is far from us for now.

Bearish scenario:

• We need to continue this negative consolidation and pullback the price below $ 38,000.
• Our first next support is at $ 36,000 from July last year.
• And if it doesn’t last, then it’s very possible that we’ll go all the way to a large support zone of about $ 30,000.

Market overview

The world of cryptocurrencies experienced another major crash, which wiped out significant monetary figures. The accident led the beginners to become the prey of the FED and left the veterans in a dilemma about their action plan. The turbulence due to the crash cost the market a loss of about 7.37% of the market capitalization. In addition, the value is now $ 1.83 T. Proponents expect a threefold increase in interest rates of 0.25% by the end of the current year. In addition, the reduction had an impact on business.

Other factors that act as catalysts for growing cryptocurrencies are Russia’s central bank calling for a total ban on cryptocurrencies, EU regulators banning cryptocurrencies, Spain, the UK, and Singapore banning crypto ads.

The downfalls prevalent from the FEDs have now become a routine matter, which the joint efforts of the fraternity must address. New investors join the business, and cryptocurrencies receive funding from institutions following market trends.

Buying the lowest values ​​and making a profit during the course still remains an ideal strategy. With millennials holding most of their shares in cryptocurrencies, a big influx of newer investors would bring benefits to the business shortly.

The market crash was terrible for the broader market, and the bulls are now far from the horizon in the short term looking at the charts. Buying the lowest values ​​and making a profit remains an undisputed strategy. Traders need to consider investing only what they can afford to lose. Although the bull race seems to be out of sight, this is probably one of the right moments to catch the favorites.