Bitcoin’s short-term price activity once again appears to be a distinct beast than bulls’ long-term belief.
On April 8, Bitcoin (BTC) faced a new threat of a drop below $40,000, as bulls were unable to be rescued by short timeframes.
Bitcoin faces a possible return to the $38,000 support level.
Prior to Friday’s Wall Street open, TradingView data showed BTC/USD consolidating in a range limited by $44,000.
The pair’s volatility had eased following a week-long decline from 2022 highs, but analysts warned that a return to the year’s established trading range was a foregone conclusion.
“BTC is currently attempting to convert the $43,100 area into support. If it fails to do so and $43K becomes resistance… BTC will confirm a return to the $38K-$43K consolidation zone from earlier this year,” prominent trader and analyst Rekt Capital highlighted in his most recent Twitter update.
“Until then, retest is being conducted.”
Crypto Ed, who identified a failed breakout attempt at $44,000 as a possible bearish continuation signal, was also on the lookout for a new leg down.
You were warned pic.twitter.com/1BPi8yBRY6
— Ed_NL (@Crypto_Ed_NL) April 8, 2022
Additionally, he indicated $40,000 as the next probable bearish target in a YouTube video that day.
Rekt Capital offered a possible silver lining in the form of BTC/USD maintaining its 50-week exponential moving average (EMA) following an earlier breakout — something that has historically “preceded enormous upside,” he added.
Bitcoin 2022 outperforms markets
The dismal price performance coincided with the ongoing Bitcoin 2022 conference in Miami, which failed to boost market sentiment despite numerous attention-grabbing speeches and announcements from prominent industry figures.
PayPal co-founder Peter Thiel garnered attention with a keynote address in which he listed Warren Buffett, the ESG movement, and others as Bitcoin’s “adversaries” in the United States.
“If we were to characterise this in a single frame, it is the finance gerontocracy that rules the country via whatever foolish virtue signaling/hate factory phrase they have, such as ESG, versus what we have to think of as a revolutionary young movement,” he told the crowd.
Meanwhile, Cathie Wood, CEO of ARK Invest, reaffirmed her prediction that Bitcoin would cost $1 million by 2030.
The Wood-managed ARK Innovation ETF (ARKK) fell more than 34% year to date on Friday, significantly lagging Bitcoin.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.