Last updated on March 9th, 2022 at 11:58 am
Despite the growing geopolitical issues and the increasing need for a decentralized alternative to fiat currency, the cryptocurrency market showed a downhill movement last week. The soaring crude oil price around the globe becomes another primary reason for the sell-off observed in the crypto market.
Bitcoin prices failed to rise above the $45K milestone and created an evening star pattern resulting in a 15% fall below the $40K stronghold. BTC price tanks with long-tail formations indicate high selling pressure as bears grab the trend control.
Bitcoin prices take support at the ascending trendline at $38K and indicate the chances of a reversal above $40K. However, the daily candle shows a higher price rejection with a tail formation, but the last few hours on the clock keep the chances of bullish reversal alive.
MACD Indicator: The MACD histograms start a bear cycle with the negative crossover of the fast and slow lines as they dip below zero.
RSI Indicator: The downtrend in the RSI slope crosses below the 14-day average after it fails to sustain in the nearly overbought territory. However, the uptrend is intact as the RSI slope avoids the previous low fallout.
Rising Number Of Whales Soon To Push BTC Above $40K
The on-chain data provided by Messari showcases the whale addresses holding more than 1,000 BTC spiked from 2,127 to 2,266 within a day on Feb 28. However, despite the increased whale activity, the prices succumbed to international pressure and breached the $40K mark. Nonetheless, the whales show bullish commitment as 2,263 addresses still holds more than 1,000 BTC on March 6.
The Global In/Out of money indicator shows almost 60% of HODLers making a profit at current market prices. The on-chain clusters project a more substantial bearish zone compared to the support cluster. However, the $40K breakout will result in a rally surpassing the next set between $40K and $44K.
Contrarily, the fallout of the $37.5K level will result in a drop to $35K and invalidate the bullish thesis.
Wrapping the market analysis with the Fear and Greed Index, the indicator at 23 shows a state of “extreme fear” in the crypto market. However, a reversal will increase greed among investors and dial up the index to the neutral arena.
In conclusion, Bitcoin can show a rise in the coming days if the prices sustain above the support trendline. However, a close below the trendline will result in a drop to $35K.
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