Will Bitcoin Shoot Over $40,000 — Or Drop To $35,000?

Christian Encila

Last Updated: June 11, 2024 1:45 pm

3 mins read

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The king of cryptocurrency, Bitcoin, has slumped below its price support following crucial development on EPA environmental issues and other factors.

Bitcoin price is now at $38,832.74 as of this writing.

Now, many bitcoin experts are worried that Bitcoin’s price could plummet further as it struggles to hold onto the $38,000 price level.

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Profit-Taking Culprit For Bitcoin Slump

More so, profit-taking may have some impact on why Bitcoin is straining to breach the $40,000 mark. Support at the $38,000 level could also be holding as triggered by the buy-the-dip sentiment.

Santiment, a cryptocurrency data feed for investors, has tracked an increase in BTC in-profit transactions. The count has ramped up fast over the last two weeks which were all classified as selling.

That being said, the BTC market price may not speedily recover unless traders put a stop to selling.

Bitcoin has been trading below $40,000 over the past week. The low volumes can be disheartening to crypto traders and investors.

BTC total market cap at $731.71 billion on the daily chart | Source: TradingView.com

Additionally, Bitcoin has also suffered a massive drop on Sunday yet has recovered the following day. So, in the last 24 hours, the price has climbed and bounced back by 2.7%.

ZebPay analysts said the top currency has glided down at $38,750 with a 61.8% Fibonacci Retracement Level and consequently dipped to $37,386.

Bitcoin has had multiple supports at around $37,300 which already happened in the past, so it’s psychologically adapting and displaying the same trend.

RSI Showing Positive Divergence

As the crypto’s relative strength index hits the long-term trendline, BTC was rejected three times. In order to improve the BTC market price, the trendline needs to break. BTC has technically formed this falling wedge pattern but luckily the RSI showed positive divergence.

Bitcoin has dropped to over 20% over the past month. Now, movements of this type can trigger flush-outs in the futures market also causing tremendous reductions in the open interest.

The problem lies with the open interest not going down significantly with the current downtrend happening. It still remains a bit higher compared to March 2022 when the most sought after crypto was trading relatively at the same prices.

So, if the price is able to close and is sustained over the wedge resistance line then an increase is expected of up to $41k to $41.5k levels.

However, a close or a break happening below the support will be tantamount to Bitcoin further slipping and the prices can also go down to $37k – $35k levels.

If the price breaks at these levels, expect immense liquidation and price drops, considering the high open interest in contrast to the market cap.

Now, the $37K level is a critical area to watch out for in the next couple of days, because it can greatly impact the market trend in the short term.

Featured image from Pixabay, chart from TradingView.com

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.