Bitcoin price slumps 4% on Friday with a bearish sentiment.
The recent correction in the price is expected to continue.
BTC tumbles to the five months lows below $40k.
Broader Sell-off in Global market due to risk aversion augmented BTC fall
BTC slipped $40k for the second time since January 10. The largest cryptocurrency slipped nearly 8% to $38,261 in today’s trading session. As per the CoinMarketCap, the digital tokens shed roughly around $ 1trillion in value since November’s ATH.
The US Dollar Index (DXY) remains stable above 95.50 in accordance with the prospects of tighter monetary policy in the US. According to CoinGlass, there have been nearly $600 million in liquidations in the past 12 hours.
Source: Trading view
On the weekly chart, sellers are now holding near the double bottom. A decisive close below $39k could see the correction up to 23% with lows last seen in July at 30K.
The momentum oscillator, weekly Relative Strength Index (RSI) reads below 50 hints more correction in the price. While the MACD (Moving Average Convergence Divergence) breaks below the midline with bearish crossover. Barring a few bounces back in prices, the overall trend remains bearish for the pair.
On the other hand, if the price manages to get hold of $40K, then a reversal could be seen. BTC could see upside till $50k.
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