|

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.

Author

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.

More from FXStreet Team
Share:

Editor's Picks

Ripple extends gains as cooling signs in US inflation mount

Ripple (XRP) holds above support reclaimed at $1.10 at the time of writing on Wednesday, extending its rally after the US Producer Price Index (PPI) data for June showed that price pressures in the world’s largest economy are cooling.

Crypto Today: Bitcoin, Ethereum, XRP stall after US CPI-driven mild rally

The cryptocurrency market pauses on Wednesday, following a brief, macro-driven rally the previous day. Bitcoin (BTC) is consolidating above $64,500, signaling waning bullish momentum and increased profit-taking as sellers emerge.

Chainlink holds gains as bullish momentum builds

Chainlink (LINK) price edges higher on Wednesday, holding its 5% gains from the previous day. Retail speculative demand for LINK is rising, with its futures Open Interest up 6% over the past 24 hours.

Bitcoin approaches technical pivot as soft US CPI aids recovery

Bitcoin (BTC) is near the key technical resistance zone around $65,160 on Wednesday as softer-than-expected US inflation data improves risk sentiment across the crypto market.

Bitcoin: Strategy sells, the market doesn’t care
Bitcoin (BTC) reclaims $64,000 on Friday, extending a modest recovery while holding firmly above the key technical support zone so far this week. Mixed spot Exchange Traded Funds (ETFs) flows through Thursday reflect cautious institutional positioning. Meanwhile, traders have digested headlines about Strategy’s recent Bitcoin sale, highlighting the Crypto King’s resilience and deep liquidity.