Bitcoin Beneath Key Support Level; What’s Next?

Bitcoin, the flagship cryptocurrency has remained below $40,000 over the past few days. The broader market correction has pushed altcoins to trade below their key support levels. Ethereum was priced below $3000 as the coin was rejected from the aforementioned price level. Bitcoin’s tough resistance stands at $40,000 as traders continue to exit the market over the last week. In the last 24 hours, BTC had fallen by 3% and in the past week, the coin registered a 6% depreciation. The crypto market continues to be in an accumulation phase. Increased accumulation is often tied to bullish pressure in the market, however, the market paints a different picture. Higher accumulation is also tied with increased risk/ratio which is basically a bullish indicator for the coin. Other Metrics To Reinforce That Bitcoin Could Pick Up A Bullish Price Direction Data from Kaiko display that trade volumes have gone down for both BTC and ETH. The image below depicts the dip in trade volumes seen on major centralized exchanges, it shows how BTC and ETH are at their lowest trade volumes ever since the August 2020 bear market. Essentially, this could mean that people might be holding onto their assets as the accumulation phase suggests and that prices are anticipated to go up. Currently, Bitcoin’s short-term price action remains bearish amidst a broader market weakness. Bitcoin Price Analysis: Four-Hour Chart Bitcoin was exchanging hands at ...