Is Bitcoin Heading to $38K? Analyst Shares Insights On Why BTC Is at a Crucial Level

In the current crypto market scenario, all eyes are on Bitcoin as it grapples with a crucial technical juncture, prompting crypto analyst Cryptonary to raise the question: Is Bitcoin heading down to $38K?

According to insights provided by Cryptonary, Bitcoin is engaged in a significant battle at a key technical level, and the outcome may determine its short-term trajectory. The mechanics of the market have undergone a reset, with open interest pulling back and funding remaining relatively positive, hovering close to the 0.01% mark.

On the 12-hour timeframe, BTC appears to have lost the main uptrend line, signaling a potential weakening of its position. A close below this line would mark the first major sign of vulnerability.

Bitcoin is currently contending with horizontal support in the range of $40,900 to $40,600. This level is crucial for BTC to secure support and initiate a short-term rebound. Failure to do so could pave the way for a more substantial downside.

The primary horizontal support in the event of a breakdown is identified at $38,000 to $38,300.

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The RSI (Relative Strength Index) has undergone a reset on major timeframes, except for the Weekly, which remains slightly overbought.

Cryptonary’s Analysis

Bitcoin stands at a pivotal juncture, with a local horizontal support at its current price points potentially serving as a springboard for a bounce. However, the lost uptrend line presents a challenge, and unless a major turnaround occurs in the next 13 hours, the underside of the uptrend is likely to act as resistance.

Despite market mechanics appearing healthy again, Cryptonary anticipates Bitcoin trading lower in the coming weeks. Even if a short-term bounce occurs to retest the underside of the uptrend line, the analyst envisions a probable move down to test $38,800.

As Bitcoin navigates this critical phase, the crypto community awaits developments that could shape its near-term price action.

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Temitope Olatunji
Temitope Olatunji

Temitope is a seasoned writer with over four years of experience. He specializes in Web3 and FinTech topics and enjoys creating content in these areas. He holds both a bachelor's and master's degree in Linguistics. When not writing, he trades forex and plays video games.