Bitcoin (BTC) continues to plummet below $ 43,000 on February 7 as markets prepare for what promises to be a busy week.
Another overnight move took BTC / USD just over $ 43,000 before settling on $ 42,000 in support, according to data from Cointelegraph Markets Pro and TradingView.
New losses still on the table
For market experts, the question now is what levels of support can last for a longer time frame, what would be ideal as a basis for further growth, and what bulls expect as new resistance.
For the renowned trader and analyst Rekt Capital, the 50-week exponential moving average (EMA) is now an important area to hack, and this area only crashed around Christmas.
On Monday, he concluded: “BTC is just below the blue 50-week exponential moving average, which is an important moving average in a bull market.”
“The exponential moving average represents the price point of ~ $ 44,000 and can be seen as resistance. But bringing it back to support will bring back the overall bullish bias for Bitcoin.
While highlighting a range that extends to 2021, Rekt Capital acknowledged that leaving current levels opens up the possibility of a significant decline to $ 30,000.
Annotated BTC / USD chart. Source: Rect Capital / Twitter
He added in one of several other tweets: “Bitcoin did not just reach a higher low in January 2022 compared to July 2022 …
Earlier, the Pentoshi retailer called the annual opening price for 2022 of around $ 46,000 a potential resistance headache that should continue to rise.
Meanwhile, on the other hand, trader Anbessa listed $ 38,900 and $ 37,800 as targets.
Financing rates begin to respond to revenues
Speaking about the prospect of a continuation, Filbfilb, co-founder of the trading group Decentrader, noted that negative financing rates show that the majority are still in favor of large losses.
Related: BTC price back to $ 43,000 – 5 things to see in bitcoin this week
So any upward pressure will lead to more short liquidations, destabilize bearish positions, and ideally free the market in the process.