The selling pressure in the crypto money market caused the leading Bitcoin to fall to $ 35,000. BTC price followed a rapid downward move as it dropped below $40,000. El Salvador President Nayib Bukele announced that they bought 410 Bitcoins worth $15 million at a price of $36,500. How do BTC technical charts represent the current situation? What are the future prospects?
Critical Levels for Bitcoin
The proposal of the Central Bank of Russia to ban cryptocurrencies has garnered a great reaction in the crypto community. On the other hand, news such as the expectation of a rate hike by the FED pumped a negative atmosphere into the market. Bitcoin price faced a strong resistance at the 20-day MA level. The daily RSI has entered the oversold territory. On January 21, BTC fell significantly from the $40,000 support, losing 10%. BTC has moved away from its all-time high of $68,789 by approximately 50%.
BTC price, which is constantly falling below the 200 MA line, maintains its downtrend. Also, the 20 MA line provides dynamic resistance to BTC price. Due to heavy selling in the crypto market, the RSI slipped into the oversold zone with 24. BTC price is trading at $ 35,300 at the time of writing this article. The flagship is currently floating around the psychological support of $35,000, which is the 0.5 fibo level. If the price fails to maintain this support level, the next important stop for BTC price will be the accumulation support of $ 30,000.
Whales Fill Their Wallets
On the other hand, leading Bitcoin needs to face its descending trendline before starting a proper rally. A move above $35,000 to get $40,000 again could lock the journey to $45,000. In addition, Santiment data indicated that whales are collecting Bitcoin. Whales have bought over 40,000 BTC during the current downturn.