The price of Bitcoin plummeted below $40,000 on Monday, while other cryptocurrencies saw losses, according to Coingecko data.
BTC is trading extremely close to two long-term support levels but has not yet demonstrated any bullish reversal indicators.
This comes as investors remain wary of the situation in Ukraine and the possibility of a US central bank rate increase.
The global cryptocurrency market cap is $1.80 trillion, down 2.04 percent from the previous day. The overall crypto market volume over the last 24 hours has increased by 20.13 percent to $65.06 billion.
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The 50-day and 100-day moving average lines crossed bullishly last week; nevertheless, Bitcoin was unable to maintain the bullish momentum and witnessed a price shakeout.
Later in the week, the price recovered and attempted to break above the moving average lines once more, but was swiftly rejected and fell below the $40,000 level.
Bitcoin Selling Pressure
During the week of April 18-24, BTC prices declined marginally. While the week began with an upward advance that resulted in a local high of $42,976, the price declined in the later part of the week, resulting in a protracted upper wick (red icon). This is interpreted as an indication of selling pressure.
BTC is currently trading considerably below the $42,000 mark. This is a critical long-term level that has served as both support and resistance intermittently since May 2021.
BTC total market cap at $731.41 billion on the daily chart | Source: TradingView.com
“Bitcoin and the majority of cryptocurrencies fell over the weekend as a result of growing tensions in Ukraine on the one hand and the US Federal Reserve’s views on interest rate hikes due to inflation on the other,” Edul Patel, chief executive and co-founder of Mudrex, explained.
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BTC Seen To Lose Upward Momentum
Bitcoin currently has a support level of $37,000 and a resistance level of $46,000. According to Patel, crypto investors may see the two major cryptocurrencies, BTC and ETH, lose their upward momentum. ETH is down by 3% and has been trading below $3,000 since Friday.
“If BTC falls below $35,000, the next significant support level will be $30,000. In the following days, we may see range-bound trading,” Patel said.
Meanwhile, the $42K support level for BTC has morphed into a significant resistance level in the shorter timeframes following the price’s failure to break above it.
At the $42K level, selling pressure was visible, resulting in a sharp plunge to the $39K zone, which is currently being tested.
Featured image from Newsweek, chart from TradingView.com
