Bitcoin Analysis: BTC Steadies Around $38,000: What Next?

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The last 24 hours has been one never to forget. As bitcoin steadied around $40k, the number of long traders increased oblivious of what was coming. BTC broke past the $40k support as dropped to as low as $30,000 and lower on some exchanges.

More than $3 billion got liquidated as more than 200,000 traders got Rekt. Many traders blame the current FUDs rocking the market for their loss, while some blame the creators of the FUD.

Speaking to one of the top editors at Coinfomania, he said he believes that the current FUD is a ploy by the whales to shake off small hodlers and have a bigger grip on the market. Mission accomplished it seems as some small bag holders have sold off their assets.

The on-chain analysis also agrees with the earlier mentioned comment as more funds is going into the market than before and more than 90% of the whales are still holding on to their bags as of the time of writing.

In one analysis last week, Coinfomania reported how prices reacted to rumours of Tesla, selling a fraction of its BTC bag. Commenting on possible price actions, the analyst said that a drop below $40k may be inevitable if another negative news hit the market.

While reporting the massive price correction BTC suffered last month. The analyst also talked about a drop to $30k when he called to mind a CME gap of around $38k and predicted a price drop to that level.

During the massive price correction experienced in the last 24 hours, prices came as low as testing the $30k support before a rebound. As of the time of writing, BTC has steadied above $38k. The King coin may continue to surge and trade above $40k till the week’s end.

It is also important to note that another CME gap that is yet to be filled is present from $26k to $23k. This CME gap may fill if another FUD rocks the market. Only time will tell what prices will turn out to be in the next few days.

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