Bitcoin price headed toward $42,000 after bulls failed to spark a late-week turnaround
Bitcoin price slowly dissolves support levels in place for several weeks as the weekend begins. At the time of writing, BTC is changing hands at $42,761.
BTC/USD 4-hour chart | Source: TradingView
Bitfinex heavyweights are not the only ones who see current Bitcoin price levels as a buying opportunity
After several tests of $43,000, that area finally gave way for the pair to hit a low of $42,131 on Bitstamp, the lowest since March 23.
Bulls hoping for a rescue move have felt the pain, with a total of $200 million worth of cross-cryptocurrency liquidations in the 24 hours to press time on Saturday. Data from Coinglass Financial reports a supervisory resource on the confirmation chain.
Crypto liquidations chart | Source: Coinglass
For traders, the short-term outlook is therefore undoubtedly bearish. Prominent commentator Crypto Ed considered retesting $40,000 but warned that Bitcoin might not stop there.
The accompanying chart shows a multi-step downtrend forecast with support levels at $40,000 and $37,500.
BTC/USD annotated chart | Source: TradingView
In contrast to last week, Bitcoin’s weekly candle is set to close on Sunday, thus covering almost $5,000 in losses or 10%.
According to the latest data, Bitcoin whales are busy buying new supplies from sellers, with exchange Bitfinex noticing some notable bid volume filling.
— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) April 8, 2022
This year, the importance of Bitfinex whales and their trading habits is really important. Another high-volume wallet of unknown origin also continues to buy millions of dollars worth of BTC at regular intervals regardless of price action – a strategy known as dollar-cost averaging.
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