Bitcoin (BTC) and major altcoins have fallen along with stock markets this year as investors brace for a more hawkish Federal Reserve. At Press time Bitcoin price is facing resistance near $39,200, while Ethereum (ETH) Price is still below $3k.
A few altcoins are up over 5% Out of these, TRX and FTM are the two best performers among the top 100 crypto assets by market capitalization today.
BTC Price Action
BTC/USD has moved in a range of $37,585.79 to $38,627.86, exhibiting significant volatility.
We can observe Bitcoin price action retracing about 3.5 towards the prior support area on the 4-hour chart, implying that more downside is on the way.
On April 28, 2022, the retracement made a new lower high near $40,000. Since then, BTC has steadily declined, reaching a new low of $37,500 overnight.
This morning, the reaction was higher, returning to the prior support area of $38,700. As a result, we may expect BTC/USD to start the next week with fresh lows being tested if more upside is not witnessed.
Bullish Reversal soon?
If on-chain measures are any indicator, Bitcoin (BTC) may be on the verge of a bullish reversal, according to popular crypto analyst Michal van de Poppe.
The analyst informs his 589,000 Twitter followers that Bitcoin’s hash rate has reached a new all-time high, which has historically signaled the start of BTC rallies.
He says, While a crypto prohibition is in effect, the Bitcoin hash rate has reached an all-time high. This indicates that demand for Bitcoin mining is growing, the network is becoming more secure, and the price will eventually follow suit.
In a new strategy session, Van de Poppe suggests that a break of either $38,000 or $40,500 could anticipate BTC’s price behavior in the coming days.
He is has been long Bitcoin since $39,000, and actually looking for longs on altcoins a little bit more at this point if BTC Price is going to hold a significant support level, which is the $39,000 zone.
If we breach $40,500, I believe the next level to consider is around $43,000, where liquidity is available, and $43,2000, which is a move of almost 10%, he added.
Given Bitcoin’s sideways, low-volatility price movement, the analyst believes a strong impulse wave is on the way. Because the US dollar index (DXY) is poised for a correction, he believes a break to the upside rather than the fall is more plausible.