Bitcoin breaks local low below $39,000

On Monday, 18 April, the price of the leading cryptocurrency hit a local low not seen since mid-March. At one point the price fell below $38 550 (Bitstamp).

The BTC rate has since retraced to above $38 900. Over the last 24 hours the asset has fallen by 3.4%, over the week by 7.8%, according to CoinGecko.

According to Coinglass, over the last 24 hours liquidations on the futures market amounted to $225 million. Of these, more than $64 million were in digital gold.

Traditionally, following the first cryptocurrency, all assets in the top 10 by market capitalisation declined, with the exception of the stablecoin USDT. Over the past 24 hours Ethereum lost 4% — the coin hovered around $2,920.

The Bitcoin dominance index stands at 39%, Ethereum at 18.5%. The total market capitalisation is just above $1.9 trillion.

Earlier, cryptocurrency analyst Benjamin Cowen compared the current price movement of the leading cryptocurrency with the dynamics observed before the asset’s rise in 2013 and its fall in 2018.

According to the analyst, for the bullish trend to resume the leading cryptocurrency needs to reclaim the two-hundred-day simple moving average (SMA), which is currently at around $49 000.

“If Bitcoin can muster the courage to rise above its two-hundred-day SMA and move toward $50,000, that would look fairly optimistic. What would happen if the asset falls to $30,000, and then heads higher again? There is a good chance that we return to $40,000 or perhaps to $43,000,” explained Cowen.

Earlier in April the well-known technical analyst Peter Brandt allowed BTC to return to a bull-market phase in May 2024. Similar timelines are adhered to by Huobi co-founder Du Jun.

In April, the Celsius Network CEO Alex Mashinsky predicted Bitcoin and Ethereum reaching all-time highs in 2022.

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