Bitcoin prices have dropped to a new low of $36,000. Analysts have called for a “Hail Mary close above $39,6000” to get rid of a bearish shift in BTC’s market structure.
The price of Bitcoin is continuing to sell off and knock-on effects are looking like sharper corrections in DeFi tokens and altcoins.
The Bitcoin price has sunk to its lowest levels in just 6 months and several experts are not optimistic about a turnaround.
Data shows how a wave of selling from January 20 has continued into midday on Friday when BTC hit its low at $36,600.
Bitcoin News: Traders Expect A Consolidation Between $38,000- $43,000
The sudden price drop in BTC has many traders predicting various outcomes along the lines of an extended bear market. Others like independent market analysts ‘Rekt Capital’, are not so quick to jump the gun and declare that all is lost.
According to Rekt Capital, “Bitcoin is just consolidating inside the $38,000-$43,100 range,” but needs to hold this support level to avoid dropping down into a lower consolidation range.
Rekt Capital said, “Technically, the $38,000 support area is what separates BTC from entering the $28,000-$38,000 consolidation range. Bitcoin last consolidated in said range in Q1 and Q2 of 2021.”
Analysis of the BTC price action from a purely technical point of view was touched on by David Lifchitz, managing partner and chief investment officer at ExoAlpha, who pointed out that the “giant head and shoulders pattern for BTC is now completed with the neckline broken with BTC at $38,300.”