Bitcoin In A Crucial Test Zone! If Bulls Fail BTC Price Will Drop At This Level

After the past few day’s recession, the global crypto market has slightly moved towards a bullish trend. The global crypto market capitalization has raised by 0.86% positioning it at $1.88 trillion over the past 24hrs. The market should speed up with its gains before another wave of bearish cycle flashes.

The major contribution to the bearish cycle over the past few weeks is done by Bitcoin which has dropped by 13% since the start of April 2022.

At the time of writing, Bitcoin is trading at $40,404 with a surge of 0.75% over the last 24hrs. The immediate support level for Bitcoin lies at $38,000.

Also Read : Bitcoin Near Term Outlook is Uncertain! Here is What Traders Can Expect

Bitcoin Crushed By Bears

According to Coinglass data, The betting for Bitcoin price’s upswing by traders has hit $387 million in liquidation. Yesterday’s Bitcoin price movement was not favorable as well.

Basically, there is a liquidation occurrence when leveraged positions are closed to cut losses and during future trading, the liquidations are seen after a partial or total loss. There was a closure of $430 million in Bitcoin due to which investors had a bearish perspective.

Bitcoin proponents are of the opinion that it’s a challenging task for the Bitcoin price to recover because the long positions have had a tremendous downfall during the market crash. Along with this, after estimating Bitcoin’s price action, analysts have a market bearish flag technical pattern.

Bloomberg analysts forecast that if Bitcoin bulls don’t manage to hold the price above the $38,000 support level, the price might drop to the $37,582 level and beyond. Also if the Bitcoin price decides to decline further, the currency might fall to the $26,000 level.

Pseudonymous analyst known as Altcoin Sherpa, claims that the BTC price has diverged from the uptrend, and the Bitcoin price can also drop at the support zone which would clear the gains that have been recorded in the past two weeks.

As per a few analysts, the Bitcoin price could see a further correction as Bitcoin failed to retest a few crucial zones.