Bears control Bitcoin price, but traders say the $40K zone is still good ‘for longs’
Traders faced another day of red markets on April 14 after the weakness in equities markets continued to put a damper on crypto prices.
Data from Cointelegraph Markets Pro and TradingView shows that after holding onto support above $41,000 in the early hours of April 14, the price of Bitcoin (BTC) was slammed back below $40,000 in the afternoon session and hit a daily low of $39,550.
Here’s a look at what analysts are saying about the short-term outlook for Bitcoin.
Bitcoin needs to find support above $42,000
Bitcoin’s price action on the monthly chart was discussed by markets analyst and pseudonymous Twitter user Rekt Capital, who posted the following chart showing what happened when the $47,000 resistance level was rejected in September 2021.
Similar to the current price action, the move in September also dropped to the blue support line at $41,300 “and also respected a green higher low.”
Rekt Captial said,
“As long as BTC performs a Monthly Close above blue, history may repeat.”
A similar outlook was expressed by crypto analyst and pseudonymous Twitter user Decodejar, who posted the following chart stating, “Bitcoin needs to find support above $42,000.”
Check for longs in the $40,000 zone
Cryptocurrency analyst Michaël van de Poppe sees the current price action for Bitcoin as “a pretty standard playing field here” based on the following chart posted on Twitter.
van de Poppe said,
“Looking at the $42,000 barrier to break first, that would be a trend break. Otherwise, the $40,000 zone is the area where I’d want to check for longs.”
The possibility of a bullish uptrend
Insight into the long-term outlook for Bitcoin based on the percentage of supply held in profit was explored by analyst On-Chain College, who posted the following chart noting that the metric had “bounced off the ~62.5% level three times this year.”
On-Chain College said,
“Currently, over 69% of the supply is in profit. Historically, when this metric hits the red zone (+95%) BTC is ‘overheated’ and the potential sell pressure is high.”
A second observation suggesting a bullish future for BTC was mentioned by crypto analyst and pseudonymous Twitter user TAnalyst, who posted the following chart analyzing the “Bitcoin choppiness index.”
“For the third time since 2015, we have reached the green zone. The last two times this occurred, a massive bullish uptrend followed. Probably nothing…”
The overall cryptocurrency market cap now stands at $1.857 trillion and Bitcoin’s dominance rate is 40.9%.
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