Dip buyers expect another downtrend after Bitcoin price fell to $ 38,000

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The cryptocurrency market is in the middle of yet another lackluster day as Bitcoin (BTC) price fell ahead of the Federal Open Market Committee (FOMC) meeting when officials want to discuss whether to raise interest rates or keep interest rates near zero $ 40,000 fell.

While many investors expect BTC to resume its bull run soon, rising above $ 40,000, technical analysts are sounding the alarm of an impending death cross that could push Bitcoin price to $ 30,000 and below.

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Data from Cointelegraph Markets Pro and TradingView show that after losing the $ 40,000 support level, Bitcoin bulls were overrun by sellers, triggering a fall to today’s intraday low of $ 38,415.

BTC / USDT 4 hour chart. Source: TradingView

Despite the threat of a death cross and significant headwinds in the $ 40,000-42,000 resistance cluster, recent data from Glassnode suggests that the latest crop of Bitcoin hoverers shows no signs of selling at current levels, especially wallets that are hold for more than 3 months.

Bitcoin remains area-bound

According to David Lifchitz, managing partner and chief investment officer at ExoAlpha, Bitcoin price action has been in a range of $ 33,000 to $ 40,000 for more than three weeks as the market tries to stabilize after the May 19 sell-off.

The market crash has managed to “wash out speculators who tended to move price ‘fast and furiously'”, causing a drop in momentum for BTC, which is now stuck in the balance with “a bitter struggle” at brews beneath the surface between bulls and bears ”and has resulted in“ higher average trading volume after the crash ”.

Lifchitz pointed out that the bulls are made up of “dip buyers and institutional investors like Micro Strategy who are using the dip to build their holdings,” while the bears “are likely miners trying to dump at the best price.” can get it now ”. (ie about $ 40,000) so as not to crash the market any more and shoot yourself in the foot. “

From a technical point of view, Lifchitz highlighted the $ 42,000 level as a significant hurdle to the price of Bitcoin, at which miners would likely “need to hit their sales or be convinced they could unload at a higher price if they got a little bitcoin.” let breathe “. to overcome. “

Liftchitz said:

“Bitcoin would need a breakthrough above $ 42,000 to break out of its trading range. At that point, it could quickly soar to the $ 50,000 level, which coincides with the local lows of April 26th and May 12th, before starting to lose ground on May 15th. ”

Coinbase offers relief for selected altcoins

Daily performance of the cryptocurrency market. Source: Coin360

Altcoins also came under pressure when Bitcoin price fell below $ 40,000, but there were some tokens that managed to buck the downtrend.

The best performing token of the day is Amp, which rose 44% to hit a new record high of $ 0.1211. Shiba Inu (SHIB) and Chiliz (CHZ) also gained another 18% after gaining 20% ​​yesterday after it was revealed that Coinbase Pro would list both assets.

The total market cap for cryptocurrencies is now $ 1.6 trillion and the dominance rate of Bitcoin is 45.3%.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every step of investing and trading involves risk, so you should do your own research when making a decision.