Where should Buy or Sell the BTC?
Financial markets have had a crazy week so far, including cryptocurrencies. BTC started the week almost at the same level that is currently moving, around 39,500 USD. However, during the week, we saw (BTC) hitting a new multi-month low of $37,700. BTC weekly high was also seen at 40,765 US dollars.
Several important events accompanied this volatile market. We have reports that several countries accept cryptocurrencies, precisely BTC, as legal payments and even legal currency on the news front. On the data front, on-chain and derivatives data show that a decline in inflows and the shift from institutional investors can’t be a good signal. Besides all of that, we have ongoing conflict in Ukraine. With the possible involving Moldova in the war, we can see higher risk in the market and more interest in the safe-haven assets, and that one also could not be in favor of the cryptocurrency market.
And finally, we have a FED meeting next week on May 3-4. The stock market also experiences a decline, owing to investor concerns over the size of the Federal Reserve’s interest rate hike. If FED goes towards higher interest rates, it can be positive for BTC because stock markets can see cash out, which some can move to the cryptocurrency market.
In short, we have different market perspectives, and it will cause the volatile market to continue. We do not have enough reason to confirm the bulls or even bears.
From the technical point of view, BTC is trading below the critical level of $40,000, with first resistance at 40,250 USD and first support at 38,600. $37K is the key bottom line, and breaching under that can start a bear market, and 45,000 on the opposite side for the uptrend is the critical resistance.
