After the strong comeback that appeared last week, Bitcoin (BTC)It’s been under some selling pressure. The latest pullback came after Bitcoin faced strong resistance at the $42,000 level. According to the latest reports, more than $21 million long positions were liquidated in a very short time.
Almost $21 million in #Bitcoin Long Liquidations this last hour pic.twitter.com/8MxJpASejU
— On-Chain College (@OnChainCollege) March 21, 2022
On-chain data provider Santiment has found that Bitcoin funding rates skyrocketed during last weekend’s euphoria.
“Bitcoin closed the weekend at $40,800 after hitting as high as $42,200 a few days ago. Funding rates have been of great value in determining that traders often miss leveraged transactions that lead to sudden price corrections.”
What’s Next for Bitcoin?
As you know, Bitcoin has experienced strong volatility, especially since the Russian invasion of Ukraine. BTC pricecontinues to show sharp fluctuations between $35,000-42,000. Just before last week’s rally, we saw BTC consolidating strongly around $39,000.
At the top of this volatility, around $42,000, a strong resistance emerged, but this level does not seem to represent the last level of bullish resistances. Bitcoin could take a support at the $40,400 level before continuing the bullish move once again. If bitcoin manages to surpass $42,000 on the upside, the next level of resistance lies between $46,000 and $47,000. If this level is also surpassed, the next target will be $49,000, after which there will be some bullish attempts up to the $59,000 level.
However, downside risks remain. Popular market analyst Michael Van de Poppe noted: “If $39,600 is lost, we will probably see a lot of pain”. In this case, we could see the BTC price potentially drop to $35,000. If it fails to hold these levels, it could drop as low as $30,000.
Last week, the Fed raised interest rates, but Bitcoin still made strong gains. It seems that the market has already taken such events into account.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.