Bitcoin‘s price has fallen to its lowest levels in recent times, dropping below $39,000 due to increased selling pressure. Key macroeconomic data from the US and selling pressure from GBTC are contributing to the downward trend. The immediate future for Bitcoin raises questions about what’s next for the cryptocurrency.
Technical analysis of the two-hour Bitcoin chart reveals a descending channel formation, indicating a bearish outlook. A support break after the January 22nd decline has intensified the selling pressure. The EMA 21 level acting as resistance could further pressure Bitcoin in the short term.
Critical support levels to watch for Bitcoin are $38,913, $38,420, and $38,021. A close below the $38,913 level on a two-hour bar could signal an increase in selling pressure.
Conversely, key resistance levels on the two-hour chart are at $39,581, $39,997, and $40,292. A close above the $39,997 level could alleviate some of the selling pressure on Bitcoin.
Overall, Bitcoin’s short-term performance is caught between critical support and resistance levels, with market sentiment swaying with macroeconomic indicators and investment fund activities.
