The crypto spectrum saw yet another turbulent week, with Bitcoin exploring new multi-month lows of $37,700. Also, the stock market recorded similar sell-offs. That came as market participants remained concerned about the next rate hike by Fed Reserve.
As Bitcoin price plummeted by 41.72% from the $69,000 all-time peak, a further look into different derivatives and on-chain days shows institutional investors’ shift and faded inflows influence Bitcoin’s price behavior at the moment.
Bitcoin Struggles Below $40,000
Bitcoin has consolidated beneath its 100-day MA over the past few weeks, failing to surge past the level. The price received support from the vital demand zone at $37K and the plunging mid-term trend-line, as it weakened the bearish strength.
The value area at $37,000 is now a vital support BTC, ensuring a substantial hurdle for bears targeting lower price levels. Failure to hold grounds would see the prices dipping beneath the demand level at $30,000. Moreover, the Relative Strength Index stayed at 50, as BTC price and the RSI made a bullish divergence. That implies an impending reversal and a leg-up.
While publishing this content, Bitcoin traded at $39,507.77, gaining a brief 0.35% over the past 24 hours. Meanwhile, the RSI shows bulls gaining strength. BTC will witness upside moves with slight retracements into crucial levels this month. That is if the Wycoff model becomes true.
Investors interested in early risks may use the dollar-cost average approach and intraday trading plan to reduce risks and optimize potential profits. The asset’s final target remains around the $51,000 mark to complete triangle’s Wave D.
Meanwhile, the $37,650 swing low seemed to cancel the bullish premise. With that, bears might contemplate a move towards $34.5K, leading to a 15% fall from Bitcoin’s currency price. Bulls should stay alert to prevent such cases. Further weakness could see the bellwether crypto exploring the value areas of $30,000.
Moreover, Arcane Research shows BTC’s supply volume, which remained unchanged for more than a year, touched the 64% high. That shows investors accumulating the leading crypto.
