Bitcoin briefly topped $40,000 before reversing course as investor sentiment swung to the negative side.
Bitcoin Drops Below $40,000… Again
Bitcoin appears to be losing steam again after rising near $42,000 over the weekend.
The world’s largest cryptocurrency was down 3% as of publication time!
With a market capitalization of $724 billion, Bitcoin is presently trading at $38,500.
Bitcoin’s recent price volatility has irritated investors, since it has demonstrated significant fluctuations without confirming any particular trend.
According to Altcoin Psycho, this is what investors should do from now on.
Bitcoin’s technical charts show that if it can break out over $41,000 and hold it for a long period, it will rise to $49,000 levels.
On the downside, if Bitcoin falls below $36,000, the next level of support will be $29,000.
Things aren’t going to be easy for Bitcoin investors from here on out.
The societal and public perceptions of Bitcoin are still somewhat gloomy.
Because crypto investors/traders are highly active on the social media channel Twitter, Bitcoin mood remains relatively unfavorable, based on the Bitcoin social volume and ratio of good vs. negative statements.
Observations on Bitcoin’s On-Chain
The Adjusted SOPR (aSOPR) indicator shows that during the May sell-off, the majority of on-chain spending lost money.
The aSOPR value of 1 was used as resistance.
The SOPR, on the other hand, soared significantly higher last week as a result of significant profit realization on the Bitcoin blockchain.
According to Glassnode, the market has stopped realizing profits (holding conviction) and absorbed the sell pressure, with aSOPR returning higher.
Bitcoin (BTC) is currently trading at levels last seen in February 2021, according to another well-known researcher, Joseph Young.
On the other hand, open interest in the futures market is fairly modest.
As a result, Young sees it as a “much healthier spot-driven therapy” and is optimistic about the future.
On Twitter, he wrote:
“Bitcoin is where it was in February 2021. Yet, the futures market open interest is significantly lower. This is a much healthier spot-driven recovery. Optimistic.“
Analysts, on the other hand, have warned traders against basing their upside forecasts on previous market increases.
Bitcoin’s growth from $66 to $1,150 in 2013 does not necessarily mean that it will rise from $29,000 to $256,000 in 2021.
Forecasting future price changes has been difficult given how volatile Bitcoin has been over the last three years.
Any price level between $30,000 and $40,000 could be a good location to start accumulating if you’re betting on Bitcoin’s long-term prospects.
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