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Bitcoin falls below 40k, how low will it go?

Crypto carnage continues as Bitcoin price is violating some important price levels. The concerns among investors and traders is that perhaps we are about to see another crypto winter and it may take a long time for Bitcoin price to see any recovery as the bull cycle may be over. The actual answer is that no one really knows about that and the only thing that we do know is that institutions are still buying Bitcoin on every dip. For instance, yesterday, we saw the news from MicroStrategy who bought Bitcoin for another 10 billion. As long as institutions continue to support Bitcoin prices, we are unlikely to see crypto winter.

We maintain our narrative that the current sell-off is nothing more than a healthy correction which the market has been waiting for a long time. lower Bitcoin only means more money flow.

Speaking from a technical price point, there is no doubt that Bitcoin prices are way oversold. the Bitcoin price is very much near his 200 simple moving average and it has also violated the lower band of the Bollinger band where is your father shows that the prices are way oversold. it is highly likely that we will see a reversal trade for Bitcoin very soon. the near-term support is near 37,000 to 39,000 and if prices continues to fall, the next important support level is at 35K.

BTCUSD

Author

Naeem Aslam

Naeem Aslam

Zaye Capital Markets

Based in London, Naeem Aslam is the co-founder of CompareBroker.io and is well-known on financial TV with regular contributions on Bloomberg, CNBC, BBC, Fox Business, France24, Sky News, Al Jazeera and many other tier-one media across the globe.

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