At least for today, things aren’t looking good for Bitcoin bulls, as moving averages fade from view and $40,000 looms big.
Bitcoin (BTC) plummeted even more at the start of the new week, hitting fresh lows at $44,000 due to a lack of bullish impetus.
Bitcoin threatens loss of $44,000 “demand zone”
BTC/USD testing levels that analysts believe should remain as support, according to data from Cointelegraph Markets Pro and TradingView.
After closing below the crucial 50-day and 200-day moving averages on a weekly basis, the pair appeared less likely to recoup them on shorter timeframes.
The bullish crossover of the two averages, known as a “golden cross,” was still on the cards for Cointelegraph contributor Michal van de Poppe. However, there was “no guarantee” that bullish behavior would result from the occurrence.
“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.”
Cardano 10% losses lead fresh altcoin rout
Altcoins performed worse than Bitcoin overnight, with Cardano (ADA), which plummeted to $2.41, losing 11 percent in 24 hours.
The largest altcoin, Ether (ETH), fell 6%, with Polkadot’s DOT, which was still up 4% at the time of writing, being the only bright spot for investors.
“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.