Bitcoin selling appears to be taking a pause despite the United States launching new sanctions against Russia on February 22.
The price of BTC remains slightly below $38,000, but analysts warn that growing macroeconomic problems and a lack of buyers could lead the price to fall further.
Data from Cointelegraph Markets Pro and TradingView shows that Bitcoin (BTC) is still hovering slightly below $38,000, which some analysts have identified as a major support and resistance zone.
Twenty-five percent of Entities in Losses
Glassnode published a chart analyzing the percentage of entities in profit, and the experts concluded that, “the proportion of on-chain entities in profit ranges from 65.78% to 76.7% of the network.”
According to Glassnode, “If the market fails to establish a sustainable uptrend, these users are statistically the most likely to become another source of selling pressure, especially if the price trades below their cost basis.”
Price Could Continue to “Probe Lower”
Delphi Digital, a cryptocurrency research firm, provided more information on the headwinds facing BTC, which previously noted that Bitcoin was “moving into an area of daily, weekly and monthly resistance.”
This confluence of resistance led Delphi Digital to suggest that “the $45,000 level was a logical place to expect some profit-taking/risk-reduction activity due to the confluence of resistance zones and the speed and magnitude of the move from the lows.” recent lows”, which indeed turned out to be the case, as the price crashed shortly after reaching that level.
According to Delphi Digital, the Bitcoin price “has been stagnant for the past two weeks” and has yet to “regain any weekly support structure or the midpoint of the yearly range.”
The research firm added that, “If the $40,000 level doesn’t hold, the next level of the market structure is in the $38,500 zone. If we lose this level, expect previous lows to be revisited, with a decent chance that the price will try to go lower.”
Whales Seek to Accumulate Below USD 38,000
The on-chain analytics firm Whalemap provided one last piece of data on the movement of the Bitcoin whales, which published a chart that highlights the areas where BTC wallets saw big inflows over the last four months.
Whalemap noted that, “the whales’ areas of interest are very well defined now. Below $36,000-37,000, $34,000 is expected. Macro trend reversal above $48,500.” Possible resistance areas identified from the data provided by the firm include $40,000, $43,500, $46,500, and a major resistance level at $48,500.
Bloomberg Senior Commodity Strategist Mike McGlone offered one last shred of hope when posting a tweet suggesting that Bitcoin is currently for trading relative to “its yearly average since 2020 and 2018 lows.” He further added that, “About 20% below its 50-week maximum, Bitcoin is approaching too-cold levels that have often resulted in good price support. On Feb. 22, the DowJones was close to parity.”
The global cryptocurrency market capitalization now stands at $1.708 trillion and the dominance rate of Bitcoin is 42.1%.
By Audy Castaneda
