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Why $39,000 could play a vital role on Bitcoin price trend

Bitcoin price has stronger bearish signals than last week's selloff.

  • Bitcoin price has multiple signals targeting levels under $40,000.
  • Invalidation of the downtrend is a break of $43,333.

Bitcoin price is printing larger bearish engulfing candles on Monday than those seen last week on the 4-hour chart. The current selloff looks fueled with power and has a few confluence zones pointing at levels sub $40,000. 

Bitcoin price action suggests the bears are stronger than before

Bitcoin price selloff looks like it's just getting started as the bears have demonstrated supreme power to start this week's trading session. The current price of $40,780 looks very unlikely to find support. Last week, the Bitcoin price consolidated four days before falling 10% in just one day. Traders could expect a similar behavior as the BTC price consolidated again for four days throughout the weekend and has shown a much more forceful price decline from the bears.

Bitcoin price was forecasted last Thursday to endure further drops in price by FXStreet analysts. Now that the selloff has unfolded, analysts' next question is where it will end. A mirrored move of last week's selloff points to $39,100, while a Fibonacci projection tool has a 2.618 level in the mid $38,000 zone. Both targets will easily get breached with the lack of bullish defense displayed in the current BTC price action. 

btc 4/11/22

BTC/USDT 4-Hour Chart

Traders can either jump into the downtrend and wait for another price pattern to surface on the 4-hour chart. Invalidation will be a price spike above $43,333. If this were to happen, the $50,000 BTC price target would be back on the table, resulting in a 20% increase from the current Bitcoin price.

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FXStreet Team

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

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