Bitcoin needs to flip $38k-$40k area
January 31, 2022
Planning a hike in the US proposed interest rate federal reserve has put the brakes on Bitcoin’s bullish move as the leading cryptocurrency trades between $33,000 and $38,000 zones.
Rekt capital believes that the $38k-$40k zone should be flipped to support more sustained bullish momentum as it is a high resistance area.
The cryptanalyst explained, “BTC hits the red area of high resistance and repels there. For BTC to move above $40,000, it needs to flip the red range high towards support. Until then, BTC will just stay within the $28k to $38k range”.
Bitcoin traded below its all-time high of $69,000 which was set in November 2021. This has sparked the notion that the cryptocurrency may have short-term gains because holders remain unimpressed about the current decline.
The current situation also paints a bleak picture as the US Dollar index has gained power. This is not a friendly situation for risky assets like Bitcoin as market analysis shows an inverse correlation.
On-chain analyst Dylan LeClair stated, “DXY is pumping hard. A strong relative dollar is quite bearish for risky assets. Something to keep an eye on”.