Things aren’t going as planned for bulls, as Bitcoin has failed to recover from its slump and has continued to range as $40k becomes an impenetrable mountain for the world’s most popular cryptocurrency.
After failing to reclaim the $40,000 barrier before the weekend, it’s now uncertain if BTC will escape its first four consecutive weekly candles in the red since June 2020, as market predictions point to more losses.
Four red weekly candles in a row would be an uncommon occurrence, and it’s worth mentioning that it hasn’t happened on the weekly chart in the last two years. It’s also worth noting that its appearance two years ago preceded the rally to a new all-time high for Bitcoin.
Following in the footsteps of stocks, Bitcoin now faces resistance at the psychological level of $40,000, with traders expressing their skepticism about a short-term recovery.
The majority of traders expect fresh Bitcoin price losses after a difficult end to the week, according to data. Not only Bitcoin, but the majority of the crypto market has failed to go higher since the drawback.
Funding rates across futures exchanges were firmly negative into the weekend, according to data from on-chain analytics site Coinglass, implying that the bulk of market participants expected shorting to be a profitable bet.
Material Indicators, an on-chain monitoring site, also revealed diminishing bids below the spot price, which continued to retest the $40,000 level, indicating that there isn’t much fuel left for Bitcoin to break the barrier.
The lack of confidence as traders and investors lose faith in Bitcoin in the short term was accompanied by fear as Bitcoin went below $40,000. The Crypto Fear & Greed Index’s sentiment gauges show the market is moving back into the “extreme fear” zone, reflecting traders’ fears.
The price trajectory of bitcoin is still uncertain, and there are no clear clues as to what will happen in the following months, so be on the lookout and manage your portfolio carefully.