Bears Tighten Hold On Market, Why Bitcoin Must Close The Week Above $36,000
Bitcoin is currently down on the charts and has broken below $35,000 as at the time of this writing. As the crisis between Ukraine and Russia rages on, with reports of the latter already invading the former, the markets have taken a beating down even before the financial markets open for trading for the day. This is a significant point for the digital asset, and without recovery, bitcoin may very well solidify its position in the bear market.
Bitcoin Needs To Hold Above $36,000
Crypto analyst Justin Bennett recently released his weekly newsletter where he maps out the movement of the pioneer Digital asset. For Bennett, $36,000 is an important point that the bulls need to hold above. However, the digital asset has since broken below this point, so what happens if the bulls are unable to get the value back up above this level?
Bitcoin is now far from being constructive, especially with the numerous dips that have rocked the asset. It had fought hard at $39,000 but had eventually succumbed to tremendous sell pressure that dragged it below support.
Next was the $36,000 support area. But the digital asset has since broken below this since news of the Russian invasion broke. Next was $35,000, below which is the 4-month range low at $30,000, says Bennett.
BTC starts another recovery trend | Source: BTCUSD on TradingView.com
Holding above $36,000 is crucial for bulls this week, leading the asset one step closer to $39,000, which would open up the $42,000-$46,000 range. But this seems unlikely.
“As I’ve mentioned a few times this week, Bitcoin needs to get back above $39,600 on a daily closing basis to turn constructive again,” said Bennett. “So far, buyers haven’t been able to do that.”
Looking At Ethereum
Bitcoin has not been the only one taking a hit this week. Ethereum and other altcoins have in fact borne the brunt of it, with double-digit descents recorded daily. Ethereum which has since lost its footing above $3,000 continues to decline on the charts and has now made its way towards $2,300.
Bennett noted in his analysis that a daily close below $2,570 would see the digital asset crashing towards $2,300, which was the case on Wednesday, and the early hours of Thursday have seen ETH decline towards this point.
Related Reading | Data Says Bitcoin Holds Up To Macro Turmoil Better Than Altcoins
Alternatively, if the digital asset had been able to close above $2,900 yesterday, this would have opened it up to $3,100. The crypto analyst explains that without this high daily close, the cryptocurrency continues to stand on shaky ground.
Ethereum is currently trading below its 50-day simple moving average. This poses a significant threat to the value as sellers have now successfully taken over the market. As the sell-offs continue, the digital asset may very well touch the $2,000 level by the close of the weekend.
Featured image from FX Empire, chart from TradingView.com