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Sellers pressed Bitcoin's price back below $40,000, while analysts believe BTC will remain rangebound until the $42,000 level is breached.
The cryptocurrency market is in the midst of another lackluster day on June 16, with the price of Bitcoin (BTC) dipping below $40,000 ahead of the Federal Open Market Committee meeting, where United States officials intend to discuss whether interest rates should be raised or kept near zero.
While many investors anticipate that BTC will soon resume its bull run and rally above $40,000, technical analysts are sounding the alarm about a looming death cross that could send Bitcoin's price to $30,000 and below.
Data from Cointelegraph Markets Pro and TradingView shows that after losing the $40,000 support level, Bitcoin bulls were overrun by sellers, triggering a drop to June 16's intraday low at $38,415.Â
BTC/USDT 4-hour chart. Source: TradingView
Despite the threat of a death cross and significant headwinds residing in the $40,000â$42,000 resistance cluster, recent data from Glassnode suggests that the newest crop of Bitcoin hodlers show no signs of selling at the current levels, especially for wallets that have been holding for longer than three months.
Bitcoin remains range bound
According to David Lifchitz, managing partner and chief investment officer of ExoAlpha, Bitcoin price action has been stuck in a range between $33,000 and $40,000 for more than three weeks as the market attempts to stabilize following the May 19 sell-off.
The market crash managed to âwash out speculators who were the ones who tended to move the price in a âfast and furiousâ way,â leading to a decline in momentum for BTC, which is now âstuck in limbo.â He added that there is âa fierce battle brewing under the surface between bulls and bears,â which has resulted in a âhigher average traded volume post-crash.â
Lifchitz indicated that the bulls are comprised of âdip buyers and institutional investors such as Micro Strategy which take advantage of the dip to reinforce their holdings,â while the bears are âprobably miners who are looking to unload at the best price they can get now (i.e. circa $40k) in order not to crash the market more and thus shot themselves in the foot."
From a technical perspective, Lifchitz highlighted the $42,000 level as a significant hurdle for the price of Bitcoin, which would likely need miners to âexhaust their selling or be convinced that they could unload at a higher price if they let Bitcoin breathe a little bitâ in order to overcome."
Lifchitz said:
âA break above $42,000 would be needed for Bitcoin in order to extract itself from its trading range, at which point it could power quickly higher to the $50,000 level which coincides with the local bottoms of April 26 and May 12 before beginning to lose ground on May 15.â
Coinbase provides relief for select altcoins
Daily cryptocurrency market performance. Source: Coin360
Altcoins also faced pressure as Bitcoin' price fell below $40,000, but there were a few tokens that managed to buck the bearish trend.Â
The best performing token on June 16 is Amp, which gained 44% to establish a new record high at $0.1211. Shiba Inu (SHIB) and Chiliz (CHZ) also rallied another 18% following June 15's 20% gain after the news that Coinbase Pro would list both assets.
The overall cryptocurrency market cap now stands at $1.6 trillion, and Bitcoinâs dominance rate is 45.3%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, and you should conduct your own research when making a decision.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.