Analysts believe Bitcoin price could bleed dropping lower than $40,000
- Bitcoin price continues its downtrend as the asset tracks the 200-day simple moving average.
- Proponents believe a tighter monetary policy and a benchmark US interest rate spike could increase headwinds for Bitcoin price.
- Analysts have revealed a bearish outlook on Bitcoin, predicting a drop in BTC price.
Bitcoin price plummeted from its Thursday high of $42,965 but analysts believe the Bitcoin price trend is showing signs of improved momentum. To conclude, BTC could resume its climb to $48,000 on one condition.
Bitcoin price could resume uptrend if this condition is met
Jerome Powell, the chair of the Federal Reserve, said a rise in the benchmark US interest rate by 50 basis points “will be on the table” at the next Federal Open Market Committee (FOMC) meeting.
Historically, tighter monetary policy measures have increased selling pressure on cryptocurrencies as investors pull out from speculative and highly volatile markets. Typically, Bitcoin price has dropped in response to tighter monetary policy measures, and the outlook on BTC is bearish.
Bitcoin has continued its downtrend and stayed above the $40,000 level, tracking its 200-day SMA. Analysts, however, believe Bitcoin price could recover from the slump with increasing momentum. Bitcoin could resume its climb to $48,000 and target the $50,000 level.
A three-day spike in Bitcoin price has pushed the price higher, bringing the 200-day SMA level at $48,000 into focus. Analysts have set a downside target of $38,550 for the Bitcoin price.
@twocommapauper, a crypto analyst and trader, believes Bitcoin price is caught in no man’s land, and it has been ranging for nearly 48 weeks now. The analyst believes neither bulls nor bears are in control of the price.
#bitcoin market report + On-chain.
— Two Comma Pauper (@twocommapauper) April 22, 2022
On the weekly, $BTC remains trapped in no-man's land between two channels that we've been ranging in for the past 68 wks. i.e. Neither bulls or bears are in control - the cautious trader should wait for a break before taking a trade. pic.twitter.com/nT0KD27wsb
FXStreet analysts believe Bitcoin price could witness a trend reversal and face resistance at the $44,000 level, eventually expecting BTC to retest $46,000.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
