Bitcoin Price Analysis

Bitcoin price analysis; Heavy support on $ 40,000


The price of Bitcoin has fallen to $ 44,900 in recent days after reaching a high of $ 58,500. However, experts believe that if the $ 46,200 support is broken, we will have to wait for a further price reduction.

to the the report Cryptocurrencies, despite the sharp fall of bitcoin, experts believe that the king of digital currencies has a chance to revive prices. It is worth noting that over the past few days, more than $ 6.5 billion has been liquidated in derivatives markets.

The Tom Dimark Sequence Index (TD) shows a buy signal in the 4-hour timeframe. This uptrend has been seen in the previous 9 downtrends.

This technical pattern indicates that the Bitcoin chart records 4 ascending candlesticks in a 4-hour time frame before continuing its downward trend.

Bitcoin price chart
Bitcoin price chart

On the other hand, the increase in purchase orders in this price range helps to confirm the prediction of the Dimark sequence index. Based on the Profit and Loss (IOMAP) model, analysts predict that the price of Bitcoin will rise to $ 53,000.

In this price range, about 720,000 addresses have bought more than 550,000 bitcoins. Given the large barrier created by supply, there is a possibility of absorbing some of the buying pressure. Investors in the $ 53,000 range may sell their currencies in large numbers, which could reinforce Bitcoin’s downside scenario.

IOMAP Index
IOMAP Index

However, the $ 46,200 support area seems to be the only obstacle to further price reductions, and investors are looking forward to this support. Breaking this support may be accompanied by a sharp drop in price, and this will cause widespread losses to those who had an upward forecast for the price of bitcoin.

The IOMAP categories show that the next significant support is in the $ 40,000 range. $ 40,000 is about 16 percent less than the current price of Bitcoin.

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