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Bitcoin price slips below $40,000 after a ‘lackluster’ breakout

Extreme fear is once again the dominant sentiment in the cryptocurrency community after Bitcoin (BTC) enjoyed another trading day below $40,000 and the United States struggled with the highest Consumer Price Index (CPI) since 1981.

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Crypto Fear and Greed Index. Source: Alternative.me

Data from Cointelegraph Markets Pro and TradingView shows that an early morning attempt to rally above $40,000 met a resistance wall at $40,650 and BTC price eventually fell back below $39,600.

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BTC/USDT 1-day chart. Source: TradingView

Here’s a look at what several analysts are saying about the current state of bitcoin and what could possibly be next as financial markets grapple with rising uncertainty.

Bitcoin is simply retesting a large S/R zone

The current price action for Bitcoin is widely viewed as a retest of a major support and resistance (S/R) zone, according to crypto analyst and pseudonymous Twitter user Credible Crypto sent The chart below shows the multiple retests of this level going back to 2020.

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BTC/USD 1 week chart. Source: Twitter

According to Credible Crypto, both the middle green circle and the final red circle provide past examples of intra-week moves that went above or below the weekly level, “but it means nothing without confirming a close.”

Credible Crypto said:

“Give me a closing score below BLUE and I’ll change my mind, but right now there’s no need to.”

Some analysts are forecasting a lackluster recovery

Insights into the on-chain behavior of Bitcoin investors were discussed in Glassnode’s recent weekly report, which noted that there had been “a modest volume of investor profit-taking” after BTC broke out of a multi-month consolidation offering.

According to Glassnode, “the market has posted around 13,300 BTC in gains per day since mid-February,” and while that figure is not “historically extreme,” it does seem to “provide enough headwind for prices.”

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Bitcoin made profit. Source: Glassnode

Overall, the recent recovery for Bitcoin has been relatively muted as the market awaits a major catalyst to help bring fresh impetus and new inflows to the cryptocurrency market.

glassnode said,

“Specifically in terms of on-chain activity metrics such as transaction counts and active users, the recovery so far has been relatively lackluster and continues to suggest that Bitcoin is a HODLer-dominated market with few new investors pouring in.”

Related: Ethereum price’s “bullish triangle” puts 4-year highs against Bitcoin within reach

A “MEGA PUMP” is coming

A strong bullish narrative has been highlighted by crypto trader “BTCfuel”, who sent The chart below outlines the possibility of an impending Bitcoin “mega-pump.”

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BTC/USDT 1-day chart. Source: Twitter

BTCfuel said,

“If you look at the RSI, the 2022 bitcoin correction is very similar to the 2021 correction. A strong BULLISH move is imminent.”

The total cryptocurrency market cap is now $1.850 trillion and Bitcoin’s dominance rate is 40.9%.

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.