Bitcoin is likely to fall below $ 40,000; Whales are still shopping

Some analysts believe that the current market trend may push bitcoin to $ 40,000 and even lower. Meanwhile, whales continue to increase their assets, despite price performance and volatility.

According to the Coin Telegraph, the price of bitcoin fell to $ 42,000 on April 9 (April 20) due to the weakness of buyers to start the upward trend at the end of last week.

Bitcoin price chart in 1 hour view
Bitcoin price chart in 1 hour view.

Bitcoin has slowly lost support in previous weeks since the beginning of the week, breaking the level of $ 43,000 after several clashes. The digital currency even reached its lowest level since March 23 (April 3) on the Bitstamp exchange at $ 4,846.

According to data in the chain from the analytical website Coinglass, while many buyers waited for the spark to return to the upward trend earlier in the week, they lost more than $ 200 million in trading positions in digital currency futures markets. More than $ 155 million has been liquidated in the last 24 hours.

Liquidation chart of digital currencies
Value chart of liquidated trading positions.

Thus, it can be seen that for traders the short-term outlook for bitcoin is quite worse. Crypto Ed, a popular digital currency analyst, has raised the possibility of retesting support from $ 40,000, but warned that the decline in bitcoin may not stop there.

He warned his followers on Twitter:

Until bitcoin returns to the level of 44,000 dollars, or even at best the level of 45,000 to 46,000 dollars, we must be ready to fall further and reach the level of 40,000 dollars again or even lower. As I said last week, I no longer believe in these upward trends.

Ed posted a chart with his tweet showing the multi-stage downtrend with support levels in the range of $ 40,000 and $ 37,500.

Bitcoin price analysis chart from Crypto Ed
Analysis of bitcoin prices from “Crypto Ed”.

Meanwhile, Jan Aleman and Jan Hapel, co-founders of Glassnode, an input analysis company, drew attention to possible fluctuations, citing low market volumes earlier this week.

They said in their Twitter account yesterday:

Bitcoin is trading in the range of $ 42,000 to $ 45,000. The small volume in the first week can cause a sudden price fluctuation. The bitcoin risk index is also high.

Bitcoin price chart with risk indicators and daily trading volume
Bitcoin price chart with risk indicators and daily trading volume

Unlike last week, the closing of the weekly bitcoin candle on Sunday showed a decline of approximately $ 5,000 (10%) over those seven days.

Whales are still shopping

However, not all investors seek to leave the market. According to the latest data, bitcoin whales are currently buying units that are traded by smaller retailers, and the Bitfinex exchange has also seen a significant increase in the volume of purchases.

In addition, over the past few days, a wealthy address, whose identity is unknown, has been buying millions of dollars in bitcoins at regular intervals, regardless of the presentation of the price of this digital currency. This strategy is known as averaging costs in dollars.

Post Bitcoin is likely to fall below $ 40,000; Whales still shopping first appeared in Digital Currency.

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