The past few weeks have been trying times for the world’s leading cryptocurrency as the market instability it has experienced has become its main feature for some time now.
As the price of the BTC is currently valued at a little below $38,000, analysts have issued cautions stating that the increasing large-scale economic impact and the absence of buyers looking to mop up the remaining Bitcoin tokens in supply could see its price go further down.
The sell-out of the BTC has been halted because no one is willing to risk purchasing a coin that has faced such a volatile price swing for some time now, and the sanction the U.S. placed on Russia on February 22 is not helping the situation one bit.
According to the Cointelegraph market data, the price of BTC continues to drift below $38,000, a far cry from its previous price of $40,000 in the last 24 hours. Analysts consider the current price level as a significant support zone.
BTC/USD Chart. Source: TradingView
25% of Bitcoin Holders Have Negative Equity
According to the on-chain data firm, Glassnode, the number of on-chain BTC owners profiting is moving back and forth between stability and volatility. And the vast majority of Bitcoin entities are underwater based on the current state of things.
The analysts at Glassnode noted that if the market cannot develop and enhance an upward price trend, those underwater are statistically likely to experience selling pressure, particularly if trading is priced below their estimated cost threshold.
Is The Price Of Bitcoin Expected To Go Lower?
A cryptocurrency research company, Delphi Digital, has also provided more insight into Bitcoin’s issues for some time. According to the firm, BTC is moving in a zig-zag pattern; daily, weekly, and monthly price resistance is now a feature of Bitcoin.
However, Delphi Digital affirmed that attaining $45,000 might be a reasonable support level to reduce the risk associated with profit and loss due to the link between the resistance level and the speed of the recent downward trend.
The value of Bitcoin has been static for the past two weeks and has failed to claim a weekly support base, so the market should expect more lows to happen unless drastic measures are taken.
Whales Waiting to Pounce
An additional angle has been given in analyzing the slump of Bitcoin by Whalemap, an on-chain analytics firm. Bitcoin whales are ready for a possible accumulation should the price of BTC drop below $38,000.
According to Whalemap, Bitcoin whales have a clearly defined action pattern, and their interests are well known. Plunging further below $34,000 to $37,000 would see the whales hovering, looking for where to dip their large funds in to make a purchase and expand their portfolios.
Whalemap further provides insights into the possible resistance level required to keep off the whales by stating that $40,000, $43,500, and $46,500 are significant resistance levels and pegged the major resistance level at $48,500.