Connect with us
Active Currencies 14794
Market Cap $2,467,692,571,200.00
Bitcoin Share 51.25%
24h Market Cap Change $-0.87

Bitcoin to fall to $38K? The case for this price prediction is…

2min Read

Bitcoin’s correction on the price charts has stopped. For now.

Bitcoin to fall to $38K? The case for this price prediction is...

Share this article

  • BTC has a strong support level near the $40,000-level 
  • If coin’s price drops below that level, it might sink to $38,000 

Bitcoin [BTC] has somewhat managed to stabilize its price after a quick price correction that happened a day ago. However, while considering future prospects, it’s important to take a look at the worst. If the king of cryptos registers another price correction, its value might fall all the way to $38,000.

Bitcoin’s price is stabilizing

Bitcoin caught the attention of investors once it again went past the $40,000-mark recently. However, this uptrend wasn’t to last, with BTC soon recording a correction on the charts. Here, it’s worth noting that after a bout of volatility, the last 24 hours saw the crypto fall by just 1%. 

At the time of writing, Bitcoin was trading at $41,814.05 with a market capitalization of over $818 billion. Ali, a popular crypto-analyst, recently pointed out that there are chances of BTC falling under $40,000 towards the $38,000-mark if price correction begins in earnest again. 

To validate the same, AMBCrypto had a closer look at the coin’s on-chain metrics to better understand whether investors should expect BTC to fall to that level before this year ends.

Expectations galore with BTC

As per our analysis, BTC has built a massive resistance level near the $44,000-level, especially as liquidation levels increased during that period. However, there is also a strong support level at $40,000, a level that is clear from the fluorescent lines towards the bottom of the chart.

Source: Hyblock Capital

AMBCrypto then had a look at BTC’s market sentiment to check the possibility of BTC being unable to rebound from its support level near $40,000. We found out that selling pressure on the coin was high as its exchange reserve was increasing.

As per CryptoQuant, Bitcoin’s aSORP was also red, meaning that more investors have been selling at a profit. In the middle of a bull market, it can indicate a market top.

Additionally, both its Coinbase premium and Korea premium were in the red, clearly suggesting that selling sentiment among U.S and Korean investors is relatively high now. Whenever selling pressure rises, it increases the chances of a price drop.

Source: CryptoQuant

Is your portfolio green? Check the Bitcoin Profit Calculator  

Finally, on the price charts, BTC’s MACD flashed a bearish crossover. On top of that, its Money Flow Index (RSI) also registered a downtick, increasing the chances of a price decline in the days to come.

Source: TradingView


Dipayan is a full-time journalist at AMBCrypto. He has 2 years of experience in the content creation industry. A graduate in journalism, Dipayan has a keen interest in keeping himself updated with the latest developments in the crypto-space. He is a singer and a guitarist who also enjoys going on long bike rides.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.