Bitcoin (BTC/USD) is now trading below a key support zone!
Will this lead to more selling for the crypto?
Here’s what’s happening in the 4-hour time frame:
BTC/USD: 4-hour
Bitcoin (BTC/USD) 4-hour Chart
In case you were too busy watching the premiere episode of Hulu’s The Kardashians, then you’ll know that Bitcoin is now trading below the $40,000 mark.
That’s right! BTC/USD is about $1,500 away from the $40,000 zone that lines up with a rising trend line support that had been solid since late February.
It also doesn’t help the hodlers that the 100 SMA has also just crossed below the 200 SMA on the 4-hour time frame.
Will more Bitcoin bears come out to play this week?
Risk-taking hasn’t been a profitable activity in the last couple of days thanks to “dead-end” peace talks between Russia and Ukraine, lockdowns in China, and concerns of high inflation and hawkish central banks threatening post-pandemic economic recovery.
Let’s see if this week’s market themes turn more traders away from hodling Bitcoin.The U.S. will print a bunch of earnings reports that will hint at how high inflation has hurt profit margins in the last few months.
Ditto for the manufacturing and services PMIs from major economies, which are expected to print lower figures than their March readings.
Last but not the least, escalating tensions between Russia and Ukraine (and its allies) might boost the demand for the safe-haven dollar.
Depending on the strength of BTC/USD intraday losses, I’ll be watching either the $37,500 or $35,000 previous support areas for buying opportunities.
If markets adopt a risk-friendly environment, though, then I’ll be on the lookout for BTC/USD extending its months-long uptrend.
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