By Shelly Melancon (Switzerland)
Bitcoin is trading slightly under $38,000, but some analysts in the crypto sector are saying that increasing macro-economic related issues and lack of interested buyers could take the price lower still.
The sell-off Bitcoin has experienced in recent times has halted even as the United States has rolled out its latest sanctions on Russia.
Recent market data reveal that Bitcoin price has continued to rotate a bit under $38,000, which analysts recognize as an important resistance and support zone.
A Quarter of Entities Have Gone Under
Glassnode, a leading on-chain data firm, published a report on its website where it analyzed the percentage of entities making some level of profit, and the report was concluded on the note that the percentage of on-chain entities making gains is swinging between 65.78% and about 76.7% on the total network.
As further revealed in the report, over 25% of the total network trading entities are currently underwater in their latest position, whereas roughly 10.9% of the network has a cost basis ranging from $33,500 and $44,600.
The firm said that if there is a failure by the market to have a sustainable uptrend, then those affected users, statistically, will most likely become another source of sell-side pressure, specifically if the price happens to go under their cost basis.
Price Might Continue to Go Lower
More information about the headwind confronting Bitcoin was given by Delphi Digital, a cryptocurrency research company that initially observed that Bitcoin was steadily moving into a place of resistance on a daily, weekly, and monthly basis.
Delphi Digital was prompted by the confluence of resistance to thinking that a logical place to expect reduced profit-taking as a result of the confluence of various resistance regions was $45,000, which was expected to aid the magnitude and speed of the movement away from recent low points. It really turned out to be the situation as prices dropped just after they reached the stated level.
As Delphi Digital said and is pretty obvious to everyone, Bitcoin price has been stalling in the past two weeks, and it is yet to claim any support structure on the week or the midpoint of the annual range. The firm stated further that in the event of the $40,000 level failing to hold, the other level of available structure is in the $38,500 zone. If this level is lost, one can expect former low levels to be visited again with a good possibility of the price going lower.
Whales Plan to Accumulate More Below $38,000
An insight into the activities of Bitcoin whales was revealed by Whalemap, an on-chain crypto analysis company. The company said that the areas where whales have a high interest are properly defined. They are said to wait for $34,000 below $36,000-$37,000.
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