After having a hard time breaking through the 40k resistance zone, Bitcoin’s price could be going down into further losses as more positions get liquidated.
Fear ruling the crypto market
The crypto fear index has held an “Extreme fear” level all the weekend while transaction volume drops. Shorters keep pushing the price down to see lower highs when the markets open on Monday.
Bitcoin’s price is correlated to the traditional markets, which have also been giving signs of a short-period bear trend during the last week. For Bitcoin, what was supposed to be a $40.000 support has turned into a panic-controlled resistance area.
The Coinglass analytics site has shown a negative funding rate in most derivative exchange platforms, thus building shorting expectations for the next cycle. Traders will likely be waiting for another pullback before new bullish waves appear.
Some positive news
Bitcoin will officially become a legal tender in The Central African Republic. This event may boost crypto adoption and positively impact the market. The recognized trader Michaël van de Poppe has tweeted about the news stating“Adoption is growing even more”.
Additionally, the U.S. dollar currency index (DXY) is reaching two-year highs. At this point, any reverse movements have historically given Bitcoin a trend change, potentially suggesting a new upside scenario.