The Bitcoin price may ‘probe lower’ due to macroeconomic issues
The Bitcoin price is now hovering around $38,000, but economists warn that rising macroeconomic concerns and a scarcity of buyers might cause the price to “probe lower.”
Even if the US imposed new sanctions against Russia on February 22, the bitcoin price looks to be halting.
According to data from markets and trading platforms, the Bitcoin price continues to linger just below $38,000, a critical support and resistance zone highlighted by several analysts.
Here’s a closer look at what analysts are saying about the price of Bitcoin and what levels to watch in the immediate term.
25% of the crypto entities are submerged.
Data outlet on the chain The experts concluded: “that the proportion of on-chain entities in profit oscillates between 65.78 percent and 76.7 percent of the network.” Glassnode provided the following graphic evaluating the percentage of entities in profit.
“More than a quarter of all network entities are currently underwater on their position,” according to the graph, while “about 10.9 percent of the network has a cost basis between $33,500 and $44,600.”
According to Glassnode,
“If the market fails to establish a sustainable uptrend, these users are statistically the most likely to become yet another a source of sell-side pressure, especially if price trades below their cost basis.”
The Bitcoin price may continue to “probe lower.”
Delphi Digital, a cryptocurrency research group, provided more insight into BTC’s headwinds, stating that Bitcoin was “going into an area of daily, weekly, and monthly resistance.”
Delphi Digital suggested that “$45,000 was a logical area to expect profit-taking/risk reduction activity,” which proved out to be the case as the price plunged immediately after reaching that level.
Bitcoin’s price has “stalled for the last two weeks,” according to Delphi Digital, and has yet to “reclaim any weekly support structure or the midpoint of the yearly range.”
According to Delphi Digital,
“If the $40,000 level fails to hold, the next level of market structure is in the area of $38,500. Should we lose this level, you can expect prior lows to be revisited, with a decent likelihood of price probing lower.”