The market of Bitcoin prices is definitely going through some ups and downs which has led to the dip and rise of the price of the cryptocurrency. Since the market is pretty volatile, it is up to analysts to make predictions regarding the future of Bitcoin in the best way.
However, according to the latest news on crypto today, analysts have made a prediction that the prices for Bitcoin could actually go a lot lower than they already are. The price of Bitcoin is currently slightly below the mark of $38,000 in total.
However, going by the predictions and analysis done by the experts, it has been warned that the price of the world’s most famous cryptocurrency could actually probe a bit lower due to the mounting of different macroeconomic issues along with the lack of important buyers of Bitcoin.
The sell-off related to Bitcoin is appearing to take a particular pause even though there are new sanctions being rolled out by the United States of America against Russia on the 22nd of February.
Data collected from sources shows that the price of Bitcoin (BTC) continues to hover slightly below $38,000, which some analysts have identified as a significant support and resistance zone.
About 25% of Total Entities are Underwater, According to Glassnode
On-chain data outlet, Glassnode, posted the following chart analyzing the percentage of entities in profit and the analysts concluded: “that the proportion of on-chain entities in profit is oscillating between 65.78% and 76.7% of the network.”
As shown in the chart above, “more than a quarter of all network entities are now underwater on their position,” while “approximately 10.9% of the network has a cost basis between $33,500 and $44,600.”
Glassnode said, “If the market fails to establish a sustainable uptrend, these users are statistically the most likely to become yet another source of sell-side pressure, especially if price trades below their cost basis.”
The Prices for Bitcoin Could Probe Lower
Further insight into the headwinds facing BTC was provided by cryptocurrency research firm Delphi Digital, who previously noted that Bitcoin was “moving into an area of daily, weekly and monthly resistance.”
This confluence of resistance prompted Delphi Digital to suggest that “$45,000 was a logical place to expect profit-taking/risk reduction activity due to the confluence of resistance zones and the speed and magnitude of the move off recent lows,” which indeed turned out to be the case as the price dumped shortly after reaching that level.
According to Delphi Digital, the price of Bitcoin “has stalled for the last two weeks” and has yet to “reclaim any weekly support structure or the midpoint of the yearly range.”
Delphi Digital mentioned, “If the $40,000 level fails to hold, the next level of market structure is in the area of $38,500. Should we lose this level, you can expect prior lows to be revisited, with a decent likelihood of price probing lower.”
Whales Are Looking Forward to Accumulating Anything Below $38,000
A final bit of insight into the movement of Bitcoin whales was provided by on-chain analysis firm Whalemap, who posted the following chart highlighting areas where BTC wallets saw heavy inflows during the past four months.
Whalemap also said, “Areas of whale interest are very well defined now. $34,000 awaits below $36,000-$37,000. Macro trend reversal above $48,500.” The areas where some possible resistance could be identified on the particular chart above include $40,000, $43,500, $46,500, and a major resistance level at $48,500.
A final bit of hope for BTC bulls was offered by Bloomberg Senior Commodity Strategist, Mike McGlone, who posted the following tweet suggesting that Bitcoin is currently on-sale relative to “its annual average since the 2020 and 2018 lows.” The overall cryptocurrency market cap now stands at $1.708 trillion and Bitcoin’s dominance rate is 42.1%.