$40,000 remains a hurdle for BTC price, but traders continue to agree that the current range is an accumulation zone.
Traders faced another red day on April 14, after weakness in equity markets continued to weigh on crypto prices.
Data from Cointelegraph Markets Pro and TradingView shows that after holding support above $41,000 in the early hours of April 14, the price of Bitcoin (BTC) fell back below $40,000 in the afternoon and reached a daily low of USD 39,550.
Here is a look at what analysts are saying about the short-term outlook for Bitcoin.
Bitcoin Needs to Find Support above $42,000
Market analyst and pseudonymous Twitter user Rekt Capital, who posted a chart showing what happened after the rejection of the $47,000 resistance level in September 2021, discussed Bitcoin price action on the monthly chart.
Similar to the current scenario, the move in September also fell to the blue support line at $41,300 “and also respected a green higher low”.
The analyst said that, “as long as BTC gets a monthly close above the blue line, history may repeat itself.”
Cryptocurrency analyst and pseudonymous Twitter user Decodejar expressed a similar perspective: “Bitcoin needs to find support above $42,000.”
Beware of Long Positions in the USD 40,000 Zone
Cryptocurrency analyst Michaël van de Poppe sees Bitcoin’s current price action as “pretty standard playing field,” according to a chart he posted on Twitter.
Van de Popper said that, “waiting for the $42,000 barrier to be broken first, that would be a trend break. Otherwise, the $40,000 zone is the area where I would want to check for long positions.”
The Possibility of an Uptrend
Analyst “On-Chain College” explored Bitcoin’s long-term outlook based on the percentage of the supply that remains in profit, publishing a chart noting that the metric had “bounced off the ~62.5% level three times this year”.
The analyst stated that, “currently over 69% of the supply is in profit. Historically when this metric hits the red zone (+95%) BTC is ‘overheated’ and potential selling pressure is high.”
Analyst and pseudonymous Twitter user TAnalyst, when analyzing the Bitcoin choppiness index, mentioned a second observation suggesting a bullish future for BTC.
Analyst claimed that, “For the third time since 2015, we have reached the green zone. The last two times this happened, it followed a huge uptrend. Probably nothing…”
The total cryptocurrency market capitalization currently stands at $1.857 trillion and the dominance ratio of Bitcoin is 40.9%.
By Audy Castaneda
