- There is immediate support at around $38,400 on the downside.
- Negative momentum grew after the Bitcoin price breached the $39,000 support level.
This has been a rough six months for Bitcoin, which has hurt most altcoins. Bitcoin has been dragging the whole market into a downward spiral despite occasional gains. The last 30 days have shown this to be the case.
Bears Continue to Dominate
Negative momentum grew after the Bitcoin price breached the $39,000 support level. BTC even fell below the $38,000 mark and ended the day below the 100-hour SMA, which measures price movement on a rolling basis.
BTC/USDT: Source: TradingView
The support level of $37,500 was breached. At $37,399, the price decreased, from which it has since corrected upwards. The resistance levels of $38,000 and $38,200 were violated. On the hourly chart of the BTC/USD pair, there was also a break over a crucial negative trend line with resistance above $38,000.
Despite the 23.6 percent Fibonacci retracement barrier being breached, Bitcoin’s price rose from the $40,349 swing high to the $37,399 low. The 38,800-dollar mark and the 100-hourly simple moving average are posing new challenges. Famous analyst Crypto Rover tweeted about how crucial this week will be about bitcoin and even mentioned prices going bullish in his previous tweet.
Ohhh boy this week will be exciting pic.twitter.com/gjLOFHse0P
— Crypto Rover (@rovercrc) May 1, 2022
Fib retracement level of crucial slide from $40,349 swing high to $37,399 low is also within the $38,800 zone to operate as a barrier. Next, the $39,000 level might serve as a significant barrier. As long as it closes over $39,000, we might see a considerable rise.
This might be the beginning of a new downtrend for bitcoin if it fails to overcome the $39,000 barrier level. There is immediate support at around $38,400 on the downside. The $38,000 level is the next significant support level. The price might fall to $37,500 if it breaks through the $38,000 support zone. At this point, any more losses could necessitate testing the support at $36,400.