Cryptocurrency values have stabilized today after a steep drop in the previous sessions. As traders bought the current slump, the crypto market was able to hold some gains. Inflation in the United States has reached four-decade highs, thanks to a strong jump in the consumer price index. The rise in crude oil prices also dampened emotions.
BTC Price Action
Above the $40,000 barrier, Bitcoin tried an upside corrective. BTC has risen above $40,400, but the bears have remained active.
It’s currently consolidating near $40,000, but it’s still trading below the 100 hourly simple moving average. Near the $40,250 mark, there is immediate upside resistance. On the hourly chart of the BTC/USD pair, a connecting negative trend line is forming with resistance near $40,250.
A strong rise over the trend line might push the price up to $40,800. The next level of resistance may be at $41,250. The price could surge higher if the bulls can clear the $41,250 and $41,350 resistance levels.
Near the $39,600 level, there is the immediate support on the downside. Near the $39,250 level, the next big support can be found. A breach below the $39,250 support zone on the downside could hasten losses.
BTC Price to dip to $30K?
Bitcoin Price is unlikely to reach the lows last seen in July 2021, according to crypto expert Nicholas Merten.
Merten informs his 515,000 YouTube subscribers in a new video update that, while Bitcoin’s price may still fall, it is unlikely to fall below $30,000 in the near future.
He explains that while this isn’t to say we couldn’t reduce the price by another $1,000 or two, he does not believe we’ll fall below the $30,000 mark.
Bitcoin’s diminishing supply and tendency to generate bullish higher low setups, according to the crypto analyst, are the reasons the flagship cryptocurrency is unlikely to go below $30,000.
According to the crypto expert, the number of people who have held Bitcoin for more than a year is increasing, which is helping to reduce the supply.
Merten also believes that Bitcoin will begin to outperform stock market indices such as the S&P 500 (SPX) and the Nasdaq in the coming weeks or months.
The positive thesis of the crypto expert is based on the chart of BTC against the SPX (BTCUSD/SPX). According to Merten, the pair is currently trading within a huge bull pennant and is preparing to break through the diagonal barrier after holding support for the majority of 2022.
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