The new week did not bring any changes to the cryptocurrency market. Bitcoin continues to show a downtrend, every week trying to hold above a new low.
Today’s Bitcoin price decline began during the Asian session. During the European session, the price decline continues. And at the time of publication, the BTC/USD pair is trading around 45830.
Analysts attribute the large-scale correction to the willingness of the US Federal Reserve to raise rates to curb inflation.
In early November, Bitcoin’s price was close to $69000 then the coin has lost more than 30% of its price. Investors are also intimidated by the threat of new covid restrictions. If the authorities of the European Union and the United States go to strict restrictions on business activity, then BTC is unlikely to be able to stay at current values. Most likely, the decline will continue, experts say.
According to CoinMarketCap, Bitcoin price is receiving a lot of pressure as a result of the rising trading volume. Over the past 24 hours, the site has recorded an 11.39% increase in trade volume. This indicates that there is a large number of “sell” orders, which can reduce the price of Bitcoin even more.
On the 4-hour chart, the BTC/USD pair continues to move in a downward channel. This channel limits the pair’s gains by the level of 48000 and provides support around 43500. If BTC/USD breaks down the channel it could test the mark of 39500 before starting a recovery.
In the current situation, a movement below the level of 46500 increases the chances that the Bitcoin price will drop to the area of 45500. A breakdown of this level will send the pair to the mark of 45000. Below this level, there is a high risk of decline towards 43200.
If the BTC/USD pair manages to hold above 46000, the bulls will try to bring it back above 47000. However, further, the pair will meet strong resistance in the area of 47200.