Bitcoin should be at $36K-$37K support level, avoid further downward momentum

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Bitcoin has been trading below $40,000 in recent days as more liquidations flooded the market.

Major cryptocurrency fell 15.73% in the past seven days to $36,925 during intraday trading, according to CoinMarketCapI

To avoid a further slip, Bitcoin needs to keep the zone between $36,000 and $37,000. Market analyst Michael van de Poppe explainedI

“The first area of ​​support is popping up at $36,000-$37,000, which is an area I would look for if I was looking for some longs.”

Source: TradingView

Nevertheless, Bitcoin whales seem uninterested in current prices based on shrinking demand. This could indicate that they expect the price to fall further before demand kicks in.

Crypto Trader Ali Martinez notedI

“The number of whales on the network with $100 to $100,000 BTC has been stable since Feb. 1. These wealthy market participants don’t seem interested in buying BTC at current price levels and should buy Bitcoin at a discount.”

Data from IntoTheBlock shows that near-term BTC holders have been the main catalyst for the liquidation we witnessed as their investments have shrunk by 8.7% since Feb. 14. This trend is happening amid rising tensions between Ukraine and Russia.

On the downside, Bitcoin may still turn the tables if it flips the previous resistance area between $38K and $40K to support.

Source: TradingView

Michael van de Poppe recognized that if this happens, a $46,000 drive to higher zones would become inevitable.

In January, the $38K-$40K zone acted as a high-resistance zone that proved a headache for Bitcoin to break based on factors such as planned US rate hike Federal Reserve (Fed).

Image source: Shutterstock

This post Bitcoin must maintain $36K-$37K support level, avoid further downward momentum was first published at https://blockchain.news/analysis/bitcoin-needs-to-hold-the-36k-37k-support-level-avoid – further-down-momentum

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