Following a big rebound last week, Bitcoin (BTC), the world’s largest cryptocurrency, is seeing some selling pressure. Bitcoin (BTC) is now trading 2.4 percent lower than $41,000 at the time of publication.
Bitcoin is currently facing severe resistance near the $42,000 mark, which has caused a recent drop. According to the most recent estimate, more over $21 million in long liquidations occurred in the last hour.
According to Santiment, an on-chain data source, Bitcoin funding rates spiked dramatically over the weekend due to enthusiasm. It says:
Bitcoin, as we all know, has been quite volatile, especially since Russia’s invasion of Ukraine. The BTC price has been fluctuating wildly between $35,000 and $42,000. BTC has been displaying significant consolidation around around $39,000 just before last week’s rise.
Bitcoin has lately encountered resistance at $42,000, but this is not the end of the upward resistance. Before resuming its upward path, it can find support at $40.4K. If BTC manages to break through $42K on the upside, the next resistance level will be $46K-$47K. Even if it breaks over this level, the next interim price goal is $49,500 to $59,500.
Source : Santiment
However, the downside risks are still present. “If $39.6K is lost, we are undoubtedly going to see a lot of anguish,” argues popular market expert Michael Van de Poppe. In this circumstance, we can expect the BTC price to drop to $35,000. If it fails to maintain these levels, it could fall to $30,000 or lower.
Despite the fact that the Federal Reserve boosted interest rates last week, Bitcoin saw significant gains. Such events appear to have already been incorporated into the market.
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