Bitcoin (BTC) Tests the Support at $38K

  • Bitcoin settles beneath $39.2K, testing the following support area at $38K.
  • BTC lowers gradually amid a lack of catalysts to take the leading asset high.

Bitcoin did not manage to settle over the critical resistance at $40,000, declining to the support area at $38,000. With such moves, other digital coins experienced downward pressure.

At the moment, Ethereum tries to settle beneath the $2,500 mark as DOGE fluctuated beneath the critical support zone at $2.0.

Yesterday worry stormed the crypto market due to the latest United States infrastructure that requires crypto exchanges to report their activities. Keep in mind that the bill did not highlight blows like new taxes on cryptocurrency.

For now, it seems like market players used the bill as an excuse to withdraw their profits as BTC struggled with the massive resistance in the range between $40K and $42K.

At the moment, the leading crypto requires extra catalysts to register upside moves.

Technical Analysis

The recent market actions have seen BTC sinking under the $39,200 support. For now, the crypto battles to settle beneath its following support at $38K. The Relative Strength Index stays in the moderate region.

The coin has room for additional losses with the absence of sentiments to trigger upside price moves.

If BTC drops beneath the $38K support, it will move towards the following support at $37K and the 20 EMA. If bears control Bitcoin to breach this support, the asset will drop to test the 50-EMA, located around $36.5K.

Increased pressure from sellers will take bitcoin to the $35K support.

However, with positive sentiments for rises, the last support at $39.2K will act as the initial resistance zone for the prominent crypto. If bulls capture this zone, Bitcoin will increase its chances to test the critical resistance zone at $40K.

A price move over this zone will send the coin the $41.3K resistance mark. At this level, the leading will need additional support to break towards the $42K resistance.

BTC seems to drop gradually as the market lacks the correct sentiments to trigger upside price movements.

Remember, altcoins lost some of their gains as Bitcoin saw slight retraces.

What are your thoughts about the current BTC market movements?

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