Six factors suggest that the price of Bitcoin will not fall below $37,800
Bitcoin prices have fallen sharply over the past month after hitting a 22-month high of $49,000. Currently, the largest Crypto Assets have fallen below the crucial $40,000 mark, raising concerns about the prospect of a sustained Bull Market and the overall bullish market structure. However, there are signs that the bottom of the current downtrend may be near, which could set the stage for a potential price reversal.
Market analyst Marco Johanning sheds light on the situation, providing insights into Bitcoin's price movements. Johanning said it won't be long before Bitcoin returns to the $41,500 level, or if a particular scenario arises, Bitcoin could rise from a lower level. Johanning believes that Bitcoin will eventually face a huge liquidity downturn. Notably, the price has hit below $39,000 several times, indicating that there is a lot of liquidity at these lows.
In addition, Johanning echoed the suspicions surrounding the price around $37,800 against the consensus expectation that the price would fall to the low $30,000 range. Johanning stressed that the main liquidity is below $40,000 and is not in the low range of $30,000. Traders profiting from the $30,000 low may have adjusted their stop-loss orders to protect gains, creating a layer of support below the same recent lows.
When the price starts to touch these stop-loss orders, an automatic sell occurs, driving the price down further until significant buying pressure is encountered. Analysts note that the daily order block is sitting at $37,700 and the high time frame (HTF) support is sitting at $38,5000, suggesting that there may be significant buying pressure in these price areas. Johanning also highlighted that the next imbalance is expected to be below $33,000.
Johanning said the prevailing sentiment suggests that many bears are waiting for a short market sell-off. It is predicted that once the price reverses, there will be a short squeeze, causing the price to rise rapidly.
(Source: Ronaldo Marquez)
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