Home Price Analysis Bitcoin Sell-Off After a Retest, BTC May Drop to $39.5k

Bitcoin Sell-Off After a Retest, BTC May Drop to $39.5k

Bitcoin briefly had their best foot forward before cratering in the New York Session.

Currently, the coin is trading below the critical resistance level at $42.5k, grossly trailing the USDT and ETH at spot rates as BTC cools off.

Notably, BTC prices are trading back below the April 11 bear candlestick, with rising trading volumes in a move pointing to aggressive sellers.

Two Bitcoin ETFs to Debut in Australia after Approval

The swing high during the European and early New York Session on April 21 could be at the back of supportive fundamentals. Following the approval of the first Bitcoin Futures ETF in the U.S., Australian regulators have approved similar products.

According to verified reports, Cosmos and 21Shares-ETF Securities will debut to gauge the level of crypto demand in the country.

The move has been received positively because, unlike the Bitcoin Futures ETF that received the green light from the U.S. SEC, the two Bitcoin ETFs in Australia would allow holders to have direct exposure to Bitcoin. Coinbase Global Inc, a regulated custodian, would secure these digital assets.

Experts are confident that the launch of these ETFs would make Australia the crypto gateway to Asia.

Silver Gate Bank Customers Deposit $14.7 Billion of Crypto in Q1 2022

Amid this development, it has been established that Silver Gate Bank’s customers deposited approximately $14.7 billion worth of cryptocurrencies in Q1 2022, pointing to the increasing demand for valuable digital assets.

The accumulation is despite the sharp downturn that saw most assets, including Bitcoin, plunge to register 2022 lows.

Bitcoin Price Analysis

Bitcoin

The Bitcoin price is under immense selling pressure at spot rates, reading from the performance in the daily chart.

Temporarily, BTC retested the resistance trend line completing a retest before dumping to spot levels, printing an inverted hammer with a long upper wick. Technically, this indicates structural weakness and the possibility of Bitcoin posting more losses in line with the April 11 trend defining bear candlestick.

With BTC prices trading below $42.5k and within the April 11 bear bar, aggressive traders might find opportunities to load with targets at last week’s lows at around $39.5k. This preview is because of the sharp spike in trading volumes on April 21 and the inability of bulls to conclusively sustain prices above $42.5k—a critical resistance line.

However, if there is a sudden swing forcing prices above $45k and February 2022 high, this bearish outlook would be null.

Technical charts courtesy of Trading View.

Disclaimer: Opinions expressed are not investment advice. Do your research.


If you found this article interesting, here you can find more  Bitcoin news.

Dalmas Ngetich
Dalmas is a very active cryptocurrency content creator and a highly regarded technical analyst. He has worked in various media as an analyst. He is passionate about blockchain technology, the futuristic potential of cryptocurrencies and enjoys the opportunity to help educate bitcoin enthusiasts through writing about his knowledge and analysis of coin price charts.
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