Bitcoin Price Analysis: BTC Price Consolidates Below $40,000; A 10% Bounce Is Awaited

By Rekha chauhan
May 5, 2022 Updated May 5, 2022
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Bitcoin cover picture

BTC price took a breather following the previous day’s mammoth gains. The price hovers in a very tight range with no meaningful price action. The bitcoin price rose sharply amid a retreat in the U.S dollar and higher stock indices. In addition, the bitcoin buyers are struggling to hold the upside levels.

  • BTC price retreats after locking handsome gains in the previous session.
  • The Fear and Greed Index of the largest cryptocurrency rose 6 points from 21 to 27 on Thursday.
  • We expect an upside run toward $44,000 as the price contains a crucial support zone.

BTC price consolidates

Source: Trading view

On the daily chart, the BTC price slipped below $40,000 as tested in the previous session. However, the gains were not sustainable and the price retreated lower. Further, the descending trend line from the highs of $48,124.94 acted as a strong upside hurdle for the BTC buyers. Another resistance filter is placed around the 200-day EMA (Exponential Moving Average) at $43,612.74.

Currently, the price oscillates near a make or break zone. Now, the reason to have a bullish view is the bottoming formation at around $37,000.

To make a progressive move the Bitcoin must manage to attract buyers above $40,000 on a daily basis as this would indicate the presence of significant bullish momentum. A sustained buying would push the price to meet the psychological $44,000 once the moving average is taken.

Conversely, a shift in the bearish sentiment amid a spike in sell order would invalidate the bullish outlook on the asset. A break below the previous session low would trigger a fresh row of selling.

As of press time, BTC/USD reads at $39,457.90 down 0.53% for the day. The largest cryptocurrency holds the 24-hour trading volume at $35,046,532,955 with 13% gains as update by CoinMarketCap. In addition to that, Bitcoin’s dominance index fell 0.3% to 41.9%.

 

 

Rekha has started as Forex market analyst. Analyzing fundamental news and its impact on the market movement. Later on, develop an interest in the fascinating world of cryptocurrency. Tracking the market using technical aspects. Exploring on-chain analysis to track the market.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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