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Dip-buyers anticipate further downside after Bitcoin price falls to $38K


17 Jun 2021   #Bitcoin

Sellers pressed Bitcoin's price back below $40,000, while analysts believe BTC will remain rangebound until the $42,000 level is breached. The cryptocurrency market is in the midst of another lackluster day on June 16, with the price of Bitcoin (BTC) dipping below $40,000 ahead of the Federal Open Market Committee meeting, where United States officials intend to discuss whether interest rates should be raised or kept near zero.

While many investors anticipate that BTC will soon resume its bull run and rally above $40,000, technical analysts are sounding the alarm about a looming death cross that could send Bitcoin's price to $30,000 and below.

Data from Cointelegraph Markets Pro and TradingView shows that after losing the $40,000 support level, Bitcoin bulls were overrun by sellers, triggering a drop to June 16's intraday low at $38,415. Despite the threat of a death cross and significant headwinds residing in the $40,000—$42,000 resistance cluster, recent data from Glassnode suggests that the newest crop of Bitcoin hodlers show no signs of selling at the current levels, especially for wallets that have been holding for longer than three months.

Bitcoin remains range bound

According to David Lifchitz, managing partner and chief investment officer of ExoAlpha, Bitcoin price action has been stuck in a range between $33,000 and $40,000 for more than three weeks as the market attempts to stabilize following the May 19 sell-off. The market crash managed to “wash out speculators who were the ones who tended to move the price in a ‘fast and furious’ way,” leading to a decline in momentum for BTC, which is now “stuck in limbo.” He added that there is “a fierce battle brewing under the surface between bulls and bears,” which has resulted in a “higher average traded volume post-crash.”

Lifchitz indicated that the bulls are comprised of “dip buyers and institutional investors such as Micro Strategy which take advantage of the dip to reinforce their holdings,” while the bears are “probably miners who are looking to unload at the best price they can get now (i.e. circa $40k) in order not to crash the market more and thus shot themselves in the foot."

From a technical perspective, Lifchitz highlighted the $42,000 level as a significant hurdle for the price of Bitcoin, which would likely need miners to “exhaust their selling or be convinced that they could unload at a higher price if they let Bitcoin breathe a little bit” in order to overcome."

Lifchitz said:

“A break above $42,000 would be needed for Bitcoin in order to extract itself from its trading range, at which point it could power quickly higher to the $50,000 level which coincides with the local bottoms of April 26 and May 12 before beginning to lose ground on May 15.”

Coinbase provides relief for select altcoins

Altcoins also faced pressure as Bitcoin' price fell below $40,000, but there were a few tokens that managed to buck the bearish trend. The best performing token on June 16 is Amp, which gained 44% to establish a new record high at $0.1211. Shiba Inu (SHIB) and Chiliz (CHZ) also rallied another 18% following June 15's 20% gain after the news that Coinbase Pro would list both assets.

The overall cryptocurrency market cap now stands at $1.6 trillion, and Bitcoin’s dominance rate is 45.3%.


Related

Bitcoin has now been above $10K for a whole year
Bitcoin bulls look to profit from Friday’s $195M BTC options expiry
Bitcoin steals $47K from bears as critical BTC price resistance crumbles
Tight crypto market range as compressed spring
Bitcoin price flirts with $40K, but derivatives data is still bullish
Here are the BTC price levels to watch as $38K emerges as bulls' line in the sand
Bitcoin does not make a great deal of sense
Without confirmation from BTC, altcoin’s growth could be a trap
Bitcoin to hit $100,000 this year? Standard Chartered thinks it might

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap Volume 24h
1 Bitcoin (BTC) BTC Bitcoin predictions 83.6% 24 $48 023.28 -0.71% 3.44% $903 705 648 774 $30 868 405 829
2 Ethereum (ETH) ETH Ethereum predictions 71.6% 52 $3 563.80 -1.89% 4.12% $418 950 530 113 $18 493 669 977
3 Cardano (ADA) ADA Cardano predictions 66% 64 $2.42 -2.23% -3.43% $77 683 489 177 $3 095 901 217
4 Binance Coin (BNB) BNB Binance Coin predictions 68.4% 70 $421.22 -2.55% -0.83% $70 821 892 729 $1 657 577 581
5 Tether (USDT) USDT Tether predictions 96% 1 $1.000499 0.02% 0.05% $68 288 037 795 $74 172 515 331
6 XRP (XRP) XRP XRP predictions 71.2% 56 $1.093567 -2.51% -3.05% $50 984 520 461 $3 018 193 479
7 Solana (SOL) SOL Solana predictions 57.2% 89 $146.88 -7.34% -21.00% $43 597 219 268 $3 263 512 936
8 Polkadot (DOT) DOT Polkadot predictions 63.2% 83 $36.36 1.92% 15.42% $35 909 826 746 $2 318 625 572
9 Dogecoin (DOGE) DOGE Dogecoin predictions 66.4% 65 $0.254974 3.69% 0.76% $33 480 789 211 $1 873 594 606
10 USD Coin (USDC) USDC USD Coin predictions 94.8% 1 $1.000186 0.02% 0.01% $29 230 519 112 $2 845 039 489
11 UniSwap (UNI) UNI UniSwap predictions 68.8% 56 $25.82 -4.67% 9.72% $15 791 177 382 $595 594 004
12 Terra (LUNA) LUNA Terra predictions 68% 67 $36.20 -0.80% 12.70% $14 549 248 511 $1 555 371 086
13 Avalanche (AVAX) AVAX Avalanche predictions 69.2% 69 $64.76 6.83% 48.17% $14 265 392 957 $2 603 032 868
14 Chainlink (LINK) LINK Chainlink predictions 74% 56 $29.85 -5.29% 4.13% $13 491 251 604 $1 523 058 445
15 Binance USD (BUSD) BUSD Binance USD predictions 96% 1 $1.000197 0.01% 0.02% $12 747 342 580 $6 385 206 639

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