Bitcoin price fell to a six-week low around $38,200 before quickly recovering back above $40,000
After a significant price swing over the past week, Bitcoin traded yesterday at its lowest point since mid-March but quickly recovered. As of press time, the largest cryptocurrency by market capitalization was up 2.4% in the past 24 hours, trading at $40,485. The Bitcoin price fell as low as $38,202, the weakest in almost six weeks.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price recovers above $40,000 after dipping earlier to a 6-week low
There was a slight uptick in long Bitcoin liquidations over the past 24 hours, although not as extreme as last week. Analysts monitor liquidation levels to determine where prices will gravitate for buyers/sellers to absorb large pockets of order flow (supply/demand). Over the past three months, BTC has traded around a midpoint of $40,000, albeit with 20% price swings. That suggests a breakout or breakdown below the current trading range could trigger volatile liquidations on the long or short side.
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Bitcoin is stabilizing after a 3% decline over the past week. Short-term buyers have returned around the $37,500 support level, although resistance at $43,000 could stall an upswing in price. Momentum signals remain neutral on the charts, which typically precedes a period of rangebound price action, similar to what occurred between May and July of last year.
BTC is roughly two weeks away from registering a countertrend bullish signal, per the DeMARK indicators. If confirmed, buyers could begin to accumulate ahead of a seasonally strong period in May. Still, bearish signals on the monthly chart suggest a limited upside for BTC beyond the $50,966 resistance level.
The recent jump in equity market volatility occurred alongside a decline in gold prices. That could signal a neutral stance among market participants, especially as the rally in Treasury yields begins to cool. Meanwhile, dogecoin (DOGE) rose by 26% on Monday after Twitter accepted a takeover bid from Tesla’s CEO Elon Musk.
The overall cryptocurrency market cap stands at $1.863 trillion, and Bitcoin’s dominance rate is 41.3%.
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