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Analysts are suggesting that Bitcoin swing trading is the best move as BTC price falls below $40,000

Bitcoin (BTC) price flashed a bullish moment for a brief moment, possibly enticing some traders to open longs, before falling back below $40,000 during the evening trading session. Let’s take a quick look at what traders think of the current price action and whether or not today’s brief breakout was nothing more than a test of overhead resistance.

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BTC/USDT 1-day chart. Source: TradingView

Resistance remains at key moving averages

Analysis of Bitcoin’s weekly price action was discussed by crypto trader and pseudonymous Twitter user “Rekt Capital,” who sent The following weekly chart notes that “Bitcoin is now hovering below the green 21-week and blue 50-week bull market Exponential Moving Averages (EMA).”

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BTC/USD 1 week chart. Source: Twitter

Rekt Capital said:

“Breakthroughs beyond these EMAs have preceded an immense uptrend. Turn these bull market EMAs into support and we’ll see the bull market momentum resume.”

Bitcoin’s correlation to tech stocks sheds some light

Despite all the macro factors affecting global financial markets, according to David Lifchitz, Managing Partner and Chief Investment Officer at ExoAlpha, Bitcoin “remains stuck in the middle of its $35,000 to $45,000 range. Lifchitz noted that BTC is behaving more like a risk asset than an inflation hedge.

Evidence of this can be found by looking at the highly correlated price action for BTC and Nasdaq over the past few months.

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BTC/USD vs. Nasdaq Futures. Source: Refinitiv

According to Lifchitz, if bitcoin’s “correlation with speculative tech stocks remains high,” the Federal Reserve’s planned series of rate hikes will eventually become “toxic to risky assets,” which could lead to price declines in bitcoin.

Overall, Lifchitz suggests that for investors who are confident in its long-term potential, “Bitcoin should be actively traded as it ranges up and down.”

Related: From Beer to Bitcoin as Legal Tender: A BTC Education in Roatán

$42,300 is a crucial level to watch

According to independent market analyst Michaël van de Poppe $42,300 is the crucial level to overcome.

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BTC/USD 4 hour chart. Source: Twitter

Van de Poppe said:

“This is also a daily breaker. If it breaks, I expect a new $46,000 and possibly $50,000 test is just around the corner.”

Further evidence suggesting BTC could soon be trending higher came from analyst and pseudonymous Twitter user “Plan C,” who sent The chart below considers the confluence of multiple analytical measures for the Bitcoin price.

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Bitcoin Confluence Floor model. Source: Twitter

Plan C said:

“The last 4 times the blue and purple lines have been below the green line for so long that the bitcoin bottom was already in.”

The total cryptocurrency market cap is now $1.881 trillion and Bitcoin’s dominance rate is 41.2%.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.