Bitcoin price retests a major support/resistance zone at $38,000 as technical analysts and traders suggest that “the bottom is in.”
The ongoing tensions between Russia and Ukraine continue to be the dominant news story on Feb. 22 as Bitcoin (BTC) and the wider global financial tremble under the pressure as the world awaits some form of resolution to the matter.
Data from CoinMarkets Pro and TradingView shows that the price of BTC has traded in a range between $36,360 and $38,330 on Feb. 22 as a swirl of positive and negative developments sent mixed signals to traders who base their trading activity on news headlines.
Here’s a look at what several analysts in the crypto market are saying about the latest price developments for BTC and what levels to keep an eye on moving forward.
A retest of the $38,000 support/retest zone
The cyclical nature of BTC price movements was touched upon by crypto analyst and pseudonymous Twitter user Rekt Capital, who posted the following chart showing that Bitcoin is currently retesting the major support/resistance level at $38,000.
Rekt Capital said,
“Whenever BTC would break beyond the red $38,000 resistance area… It would pullback into this region for a retest attempt before further upside. Green circles show this. Retest is now in progress.”
Aside from a simple retest of support and resistance, this price range has emerged as a significant one when it comes to the bull versus bear market narrative as highlighted in the following chart that was posted by technical analyst Matthew Hyland.
“Bitcoin has a week to avoid having its 4th straight red monthly candle for the first time since the 2018 Bear Market. The monthly must close above $38,500 to close green.”
No need to worry above $30,000
A call for calm was put out by crypto trader and pseudonymous Twitter user JohalMiles, who posted the following chart stating, “I sound like a broken record here but it’s hard to believe how bearish people have become and we haven’t even broken OR tested $30,000.”
In a follow-up response to the tweet from JohalMiles, cryptocurrency analyst and pseudonymous Twitter user PlanC agreed with this viewpoint and made the case for a bull market moving forward.
“Basically, unless we break below $30,000 and remain below $30,000 for weeks, I lean bullish. And the $28,000–$30,000 level has acted as very strong support for a year now.”
Sentiment indicates that the end is near
A final bit of insight based sentiment in the Bitcoin market was offered by market analyst and pseudonymous Twitter user Crypto5max, who noted that “based on sentiment, the end is near” and posted the following chart looking at the Advanced NVT Signal, a metric that divides the value of the Bitcoin market capitalization by the 90-day moving average of its daily transaction value.
“We could range, of course, much like in 2021 testing S/R on numerous occasions, but there’s a lot of data suggesting bottom’s in. You do you, like you always should. But I like to see fear in the market and I am of a different (bullish) opinion.”
The overall cryptocurrency market cap now stands at $1.693 trillion and Bitcoin’s dominance rate is 42.2%.