Bitcoin – Daily Chart
2/2
Investing.com – After consolidating in a narrow range throughout the weekend, the price weakened overnight Sunday into Monday, reaching a low of around $38,800, with a deteriorating technical profile.
The cautious equity climate in Asia, especially in connection with the covid epidemic that China is currently trying to control, with serious economic consequences, is weighing on risk appetite, which is not helping bitcoin.
From a graphical point of view, the return below $40,000 at the end of last week was an important bearish signal, and Bitcoin is now starting to bite on an uptrend line visible in daily data, which had helped to limit corrections since the end of January.
In the near term, note that data from blockchain analytics site Coinglass shows traders lack confidence in a near-term bounce, confirming that funding rates on derivatives exchanges were firmly negative during the weekend, suggesting that the majority of market participants expected short selling to be profitable.
As for important thresholds to watch, last Monday’s low around $38,500 is the first potential support near current prices. On the upside, the major psychological threshold of $40,000 and the 100-day moving average at $41,087 at the time of writing this article constitute 2 significant obstacles in the event of an upside.
Finally, with regard to the economic calendar events potentially influential on Bitcoin this week, it will be recalled that the preliminary US GDP for Q1 is expected on Thursday, while that of the eurozone will be released on Friday, at the same time as the CPI. April preliminary for the region.