Bitcoin fell to $ 38,000; Where is the next price support?



The price of bitcoin fell to $ 38,000 a few hours ago after breaking key support of $ 40,000. As can be seen from the internal data, market whales have been inactive for some time and expect prices to continue to fall to lower levels so that they can then prepare to buy new units.

While market whales have seemed inactive for some time, bitcoin is trying to find new support to prevent further price declines, according to Crypto Briefing.

Bitcoin, which recently lost key support at $ 40,000, has fallen to $ 38,000 today. The decline seems to have been partly influenced by the activity of traders in the leverage markets. On the other hand, it turns out that market whales are also waiting for prices to fall to lower levels so that they can start accumulating new units at lower prices.

Currently, about 67.7% of the total accounts active in the Bainance Exchange futures markets are in long positions (buying) bitcoins. New data also shows that investors are overconfident about the future performance of bitcoin prices, while the ratio of long positions to short positions (sales) in the Bitcoin / Tetra market reached a one-month high of 2.08. He arrived.

Bitcoin fell to $ 38,000;  Where is the next price support?
Graph of long to short positions in Bitcoin / Tetra Market.

Such optimism among investors often leads to increased pressure on borrowing; Something that seems to be happening in the market right now. Borrowing is a situation in which investors step out of their long trading positions and sell to prevent further losses. If the whales do not re-enter the market and accumulate new units, the chances of increasing the pressure of the loan increase.

As can be seen from the data in the chain, wallets with between 100 and 100,000 bitcoins in stock have carried out almost no activity in the last month. These market participants, who are among the richest addresses, are not interested in buying more bitcoins at current prices; Probably because they are waiting for the price to fall to lower levels.

Bitcoin fell to $ 38,000;  Where is the next price support?
Graph of changes in the inventory of bitcoin kits (pink image line).

The lack of interest in buying bitcoins can be seen in the number of addresses that are added to the network on a daily basis. Despite a 40% recovery in the price of bitcoin in the last three weeks, domestic activity has not increased much during this period. According to Golsnod data, the number of addresses added to the Bitcoin network has recently remained stable at 400,000 per week.

Bitcoin fell to $ 38,000;  Where is the next price support?
Compare the price and the number of addresses that are added to the bitcoin network daily (orange line of the image).

Given the high correlation between prices and the growth of network activity, it seems reasonable to expect the jump in this index to be a confirmatory chain for the continuation of the upward trend. Until that happens, however, Bitcoin is likely to test support for the 200 Kendall moving average, which is $ 37,000 in a 3-day market view. It is also possible that the price will continue to follow the forecast of Tom DeMark, a well-known analyst of financial markets, and test the flat trend line at $ 33,500.

Bitcoin fell to $ 38,000;  Where is the next price support?
Bitcoin price chart; Maintaining a key price in the 3-day market outlook for bitcoin / dollar.

If buyers continue to fail to keep prices above this important support area, large volumes of trading positions in liquid futures markets will be eliminated and stronger downward pressures are likely to bring prices lower.

Post Bitcoin fell to $ 38,000; Where is the next price support? appeared first for currency.

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