Bitcoin price analysis; Heavy support on $ 40,000

Bitcoin Price Analysis: The price of Bitcoin has fallen to $ 44,900 in recent days, after reaching a high of $ 58,500. However, experts believe that if the $ 46,200 support is broken, we will have to wait for a further price reduction.

Despite the sharp decline in bitcoin, experts believe that the king of digital currencies has a chance to revive prices, according to Cryptobrading. It is worth noting that over the past few days, more than $ 6.5 billion has been liquidated in derivatives markets.

The Tom Dimark Sequence Index (TD) shows a buy signal in the 4-hour timeframe. This uptrend has been seen in the previous 9 downtrends.

Bitcoin price analysis; Heavy support on $ 40,000

This technical pattern indicates that the Bitcoin chart records 4 ascending candlesticks in a 4-hour timeframe before continuing its downward trend.

On the other hand, the increase in buy orders in this price range helps to confirm the prediction of the Dimark sequence index. Relying on the profit and loss model (IOMAP), analysts predict that the price of bitcoin will rise to $ 53,000.

In this price range, about 720,000 addresses have bought more than 550,000 bitcoins. Given the large barrier created by supply, there is a possibility of absorbing some of the buying pressure. Investors in the $ 53,000 range may sell their currencies in large numbers, which could reinforce Bitcoin’s downside scenario.

However, the $ 46,200 support area seems to be the only obstacle to further price reductions, and investors are looking forward to this support. Breaking this support may lead to a sharp drop in price, and this will cause huge losses to those who had an upward forecast for the price of bitcoin.

The IOMAP categories show that the next significant support is in the $ 40,000 range. $ 40,000 is about 16 percent away from the current price of Bitcoin.