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

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

The cryptocurrency market is in the midst of another lackluster day as Bitcoin (BTC) price dipped below $40,000 ahead of the Federal Open Market Committee (FOMC) meeting where 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 price to $30,000 and below.

Our top trading bots

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 today's intraday low at $38,415. 

Dip-buyers anticipate further downside after Bitcoin price falls to $38K
BTC/USDT 4-hour chart. Source: TradingView

Despite the threat of a death cross and significant headwinds residing in the $40,000 to $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 3 months.

Bitcoin remains range bound

According to David Lifchitz, managing partner and chief investment officer at ExoAlpha, the price action for Bitcoin 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” with “a fierce battle brewing under the surface between bulls and bears” and 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

Dip-buyers anticipate further downside after Bitcoin price falls to $38K
Daily cryptocurrency market performance. Source: Coin360

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 for the day 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 yesterday'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%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Continue reading at Cointelegraph
Price analysis 7/30: BTC, ETH, BNB, ADA, XRP, DOGE, DOT, UNI, BCH, LTC
Bitcoin (BTC) and most major altcoins seem to be faltering near their respective overhead resistance levels. This suggests that some investors are continuing...
DoubleLine CEO sees Bitcoin buy moment at $23K, predicts US dollar will drop 'pretty substantially'
Jeffrey Gundlach, the CEO of investment management firm DoubleLine, implied that Bitcoin could see more favorable activity in the long term than that of...
Fidelity to hire more crypto hands amid growing institutional interest
Fidelity Digital, the crypto arm of the global asset management giant Fidelity Investments Inc., will reportedly hire more people for its expanding cryptocurrency...
Nasdaq Dubai rolls out trading for 3iQ’s Bitcoin Fund
Canada’s largest digital asset investment fund manager, 3iQ, is expanding its reach to global investors by listing its public Bitcoin (BTC) fund on a major...
A RUNE with a view: How smart crypto traders caught a 48% price pump
Disparities in information access and data analytics tech are what give institutional players an edge over regular retail investors in the digital asset...
Basketball star turned digital racehorse tycoon: Wilson Chandler on NFTs and the NBA
As Wilson Chandler tells it, despite being a NBA star with a decade-plus pro career and nearly $80 million in career earnings, the 6’8 combo forward still...
Tim Wu, the 'father of net neutrality' reportedly owns over $1M in Bitcoin
Cryptocurrencies might be anathema for certain members of United States President Joe Biden's administration, but that has not stopped one staffer from...
Wisdom Tree files Ether ETF application with SEC
Following in the footsteps of VanEck earlier this month, Wisdom Tree has filed an application for an Ether (ETH) exchange-traded fund submitted to the United...
SEC begins formal review of Fidelity, SkyBridge Bitcoin ETF applications
A pair of Bitcoin (BTC) ETF applications submitted by Fidelity Investments and SkyBridge Capital are under official review by the United States Securities...
DMCC strikes deal to build blockchain-based precious metals refinery in Dubai
Dubai Multi Commodities Centre — a free trade zone established by the Dubai Government — has signed a sale and purchase agreement with REIT Development...
Survey Shows 38% of South Africans Wished They Invested In Cryptos Before
South Africans seem to be very interested in cyber assets. At least, that’s what the recent survey has shown. According to it, 71% of respondents of the...
Coinbase Announces “New GDAX” Launch, Obtaining Paradex
This week one of the most popular cyber money trading venues Coinbase, headquartered in California, has stirred up the crypto-community moods with two...
50 Cent Dispelled Rumors That He is a Bitcoin Millionaire, Doesn’t Regret Them
Nearly a month ago media outlets massively reported that famous rapper 50 Cent had become a bitcoin millionaire thanks for the decision to accept BTC...
Why Millennials Prefer Cryptocurrency?
Today, almost everyone knows what Bitcoin is. This cryptocurrency has become popular because of its rapid growth. But also Bitcoin has become a key element...
Philippines to Expand the Use of Bitcoin
As Bitcoin keeps increasing in price (its rate has nearly doubled to USD 10.3 per coin within last month, according to Coindesk.com), some countries’ regulators...