After a price pop on Monday above the crucial psychological level of $40,000, Bitcoin is again flirting with a six-week low. The largest cryptocurrency by market capitalization was down 6% in the past 24 hours, trading at $38,205.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price slips toward $38,000 after rally fizzles
The Bitcoin price climbed as high as $40,800 earlier Tuesday but dropped more than 5% in the past four hours. Short-term bitcoin holders who tend to follow the price action continue to decrease their positions. The balance held by these traders is 1.49 million BTC as of Apr. 25, the lowest since Jan. 18.
BTC extended its decline on Tuesday, although support at $37,500 could stabilize the down move. The cryptocurrency has been attempting to maintain a series of higher price lows since Jan. 24, which typically coincides with rising price momentum. However, this time, a bearish setup on the monthly chart could increase the risk of a price breakdown.
To sustain the current recovery phase, buyers will need to keep BTC elevated above $40,000, the midpoint of a three-month price range.
BTC’s current pullback is similar to last September when buyers began to take profits around the $46,000-$50,000 resistance zone. Still, last year’s rally above $40,000 benefited from positive long-term momentum, unlike the current situation. For now, BTC’s wide trading range could continue for another week until a decisive breakout or breakdown is confirmed.
📊 We have taken a look at #Bitcoin‘s and #Ethereum‘s average exchange funding rates to see whether traders are beginning to show the #FUD we’re waiting for. Additionally, check out our quick updates on social sentiment & debt repaid (on #MakerDAO). 👀https://t.co/a23eHoKAU3 pic.twitter.com/RLenO8wYsk
— Santiment (@santimentfeed) April 26, 2022
The second-largest crypto by market cap, Ether, was changing hands at about $2,820, off roughly 5.7%, following a day when it pushed past $3,000. Other significant altcoins by market cap were in the red, many of them significantly so. Terra (LUNA) and Cardano (ADA) were recently down over 7%. Popular meme coin DOGE fell more than 9%.
Crypto declines tracked equity markets, which tumbled as Wall Street digested an inauspicious beginning to the earnings season, fiscal tightening by the U.S. central bank, discouraging economic data, and signs that Russia would escalate its attacks on neighboring Ukraine.
The overall cryptocurrency market cap stands at $1.760 trillion, and Bitcoin’s dominance rate is 41.3%.
Read more:
- Traders Are Currently In Extreme Fear As Bitcoin Price Fails To Recover From $39,000 Dip
- Bitcoin Price Fell To A Six-Week Low Around $38,200 Before Quickly Recovering Back Above $40,000