This week, Bitcoin started on a very precarious point because of present uncertain times. So, is the USD 40,000 the new price resistance? Bitcoin has closed the 4th red weekly candle in a complete row, which is something not seen since mid-2020.
Cold feet caused by the macro market happenings is now becoming the norm, and bulls appear uninterested in getting to work. The selloff is not over.
Packing USD 4,000 in losses in four days, the price appears to target liquidity levels towards USD 30,000. However, miners and long-term holders are more positive. So, what is likely to happen in the coming days?
Asia Problems to Surpass French Election Relief
The main event of the week was the French President re-election. It was a sigh of relief for the market because Macron is expected to improve French stocks.
The US and Euro also face a wave of inflation and a falling bond market. The EU Central Bank is yet to take a decisive step to reduce its close to USD10-trillion balance sheet.
Shanghai Composite is down 4.2%, and Hong Kong has fallen by 3.5%, and since cryptos follow the stocks, the chances are the price will also fall.
Last week was really painful for stocks, according to Holger Zschaepitz. ”Global markers lost USD 3.3 trillion in market capitalization this week as US equities – after peaking on Thursday morning …,” Zschaepitz added.
Another post indicated that we are still in the problematic territory at more than 100%.
Dollar Strength is Back with Bang
One of the things that are firmly bullish, to the surprise of many crypto traders, is the US dollar. After wobbling at 2-year highs in the second week of April, the US dollar currency index (DXY) is now on a steady uptrend.
However, a strong dollar is never good news for Bitcoin because the inverse turns true most of the time. A popular crypto trader, Ed, joked that it looks like DXY unveiled a token burn.
According to Preston Pysh, the host of the Investor’s Product Network, something is amiss. “..Boj is implementing a Yield Curve Control and Yen is collapsing… something is sure feels like it is about to break …” expressed Pysh.
Weekly Charts Show Fourth Bear Candle
The weekly Bitcoin chart shows the fourth red candle, something not seen since mid-2020. This downtrend saw Bitcoin drop below USD 39,000. Now, traders are checking closely to see where the price might be headed. However, the chances of a bullish move are minimal.
According to Rekt Capital, a popular trader and analyst, the Ichimoku cloud lurking overhead would cause more huge losses for Bitcoin. Here is what the trader said:
“During Retest 1 #BTC fake-brokedown from cloud before reversing. During Retest 2 $BTC wicked sub-cloud before reversing. Now reset 3 in progress. BTC needs to reclaim Cloud as support.”
