Bitcoin (BTC) continued its decline on February 21 when $38,000 became the latest level to fail a bull test.
Hourly BTC/USD light chart (Bit Mark). Source: Trading View
40,000 USD as BTC Relief Target
Data from Cointelegraph Markets Pro and TradingView painted a bleak picture for BTC/USD on Monday, with the $38,000 support suddenly disappearing, holding it out over the weekend.
While they threatened to wipe out analysts’ hopes at the bottom, one said the chances of a recovery to $40K are still good.
“Don’t expect this leg to go too deep but should see a bounce back to 40,000 soon,” Crypto Ed told Twitter followers.
In today’s video update, Crypto Ed predicted a continuing downtrend with more moves, with $40,000 as a target for a rebound off the terrain before another dive follows, which could result in a $30,000 loss.
“If we somehow manage to get more than $40,000 back and move up, I’m optimistic, otherwise I won’t,” he concluded, adding that it would take a “miracle” for such an optimistic case to become a reality.
On the other hand, a positive side was the $37,000 increase in supply which appeared in Binance’s order book as BTC/USD drifted lower.
Monitoring data on physical resource indicators also showed that large transactions remained more or less flat, indicating that institutional investors remain concerned about the risks of Bitcoin.
However, small buyers have hesitated at the current level.
“Some order liquidity in the $20,000 range has dwindled to $30, but we want to see more order concentration to get market buyers out of control,” the Scientist Materials Index creator added in a comment on a chart showing recent activity.
BTC/USD (Binance) order book data. Source: Fundamental Indicators / Twitter.
Being immersed in the famous Chinese technology
Meanwhile, the holiday on Wall Street means there is no convincing volume in the crypto markets on Monday, which could exacerbate movement in all directions due to reduced liquidity.
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Nevertheless, macro signals continued to appear regarding the development of the conflict between Russia and Ukraine, ready to destroy the already nervous feelings.
Reports of deaths at the border came as European stock markets fluctuated, with the FTSE 100 down 0.5% in London and the German DAX down 1.3% on the day.
Another crackdown on technology in China led to separate problems in Asian markets: Tencent lost more than 6% during trading.
The trajectory of tech stocks is reminiscent of July 2021, when Bitcoin brought its entire annual dividend back to nearly $29,000.