The Bitcoin price has stabilized slightly in the last few days and could rise more strongly if it breaks above $38,000. But if Bitcoin cannot break through the resistance, there is a risk of another sharp drop lower. What does the near future of the Bitcoin price look like? Let’s assess Bitcoin’s newest price developments in this Bitcoin price prediction.
Bitcoin Price at Resistance just below $38,000
In the last few days, we have experienced another sharp drop in the Bitcoin price. It went from $43,000 to $35,000 in 2 days. The Bitcoin price has thus fallen below the $40,000 mark for the first time in months.
In the last 2 days, we have seen a slight stabilization of the Bitcoin price. It is now staying above $36,000 and trying to surpass $38,000 again and again. A resistance has formed here that needs to be broken. Looking at figure 1, we can clearly see the formation of that $38,000 resistance. It first was a support level that was broken, then turned into a resistance. In fact, back in August 2021, that same area represented also an important area for traders.
Can we reach a Bitcoin 40K Price soon?
If Bitcoin price breaks the resistance at $38,000, we could see a surge above $40,000, which would have seen the price recover from the last sharp drop. The $38,000 to $42,000 area has previously been cited as a key support zone from which Bitcoin could rally back towards $50,000.
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With the last Bitcoin crash, the bottom of the current price correction could have been reached. In the last 3 months, we saw several strong crashes, each of which we hoped was the bottom of the correction. Now that we reached the strong buy area of 30K, prices should be on their way to 40K thanks to the buying volume.
Bitcoin is Heavily Oversold
If we look at the analysis data on the Bitcoin price in figure 2, we can see that the so-called “Relative Strength Index” (RSI) is as low as it has been since March 2020. This value indicates that the bitcoin is heavily “oversold” at the moment.
This value and the strong fundamentals in the Bitcoin network, such as the further increasing hash rate, suggest that we only saw a strong correction, but could still be bullish in the long term. On top of that, the Fibonacci retracement suggests that prices can go as high as $46,000, which happens to be another support for BTC.
The Crypto Market at a Glance
In the past 24 hours, the cryptocurrency market rose by an average of +3.8%. The Bitcoin dominance rose to 41.7%, and Bitcoin’s price increased also by +3.2%. Despite the crypto market being green, one should always proceed with care, as we are still considered in a bear market.
1- Bitcoin (BTC) : + 3.2 %
2- Ether (ETH) : + 6.7 %
3- Tether (USDT) : 0 %
4- Binance Coin (BNB): + 1.5 %
5- USD Coin (USDC) : + 0 %
6- Cardano (ADA) : + 4.5 %
7- Solana (SOL) : + 9.1 %
8- Ripple (XRP) : + 3.2 %
9- Terra (LUNA) : + 1.2 %
10- Polkadot (DOT): + 5.3 %
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