Cryptocurrency

Bitcoin tests key level for $40,000 BTC price dip

Bitcoin hit a record-high above $43,000 on Monday after electric carmaker Tesla invested $1.5 billion in the digital currency.

Bitcoin (BTC) fell further at the start of the new week as a lack of bullish momentum sparked new lows near $44,000.

Data showed BTC/USD testing levels that analysts demand should stay as support.

After a weekly close below both the key 50-day and 200-day moving averages, the pair looked increasingly less likely to reclaim them on shorter timeframes.

For Michaël van de Poppe, the bullish crossover of the two averages, known as a “golden cross,” was still on the cards. There was, however, “no guarantee” that bullish behaviour would result from the event taking place.

“I think we’re going to have a top of this cycle… next year, in April–May,” he forecast, giving a new, further-reaching timetable for BTC/USD to see its cycle top.

In the meantime, $44,000 and $47,000 form the support and resistance levels to watch for a continuation up and down, he added.

For fellow trader and analyst Rekt Capital, $44,000 was equally important, forming the lower boundary of a “demand area” among buyers.

“The recent BTC Weekly Close wasn’t technically bad as it occurred above the orange demand area. However, BTC is now dipping deeper into the demand area,” he commented on an accompanying chart Monday.

“That said, this demand area still hasn’t been lost. As long as the demand area holds, BTC won’t see $40K.”

Altcoins fared worse than Bitcoin overnight, with the top 10 led by 11% 24-hour losses on Cardano (ADA), which fell to $2.41.

Related: Bearish pennant breakdown confirmed? 5 things to watch in Bitcoin this week

The largest altcoin, Ether (ETH), shed 6%, while the sole saving grace for investors was Polkadot’s DOT, which at the time of writing was clinging to 4% upside.

“Many Altcoins have performed favourable Weekly Closes, indicating that retests should follow,” Rekt Capital added about the latest moves.

“At this time, the retests are failing, coins threatening to lose key supports. But it’s early in the week. Could easily turn out to be normal retest volatility.”

Trader Scott Melker, meanwhile, soft-peddled concerns about Bitcoin’s failing market dominance, arguing that new altcoins were artificially diluting its stance.

Get more stories like this on Twitter and Telegram

Recommended Stories