The downside pressure in the global financial markets could reemerge at any point and thus push bitcoin lower as well
Amid a widespread sell-off that hit global markets yesterday, the bitcoin price plunged to mid-2021 lows around $32,900 before bouncing above $36,000 as dip buyers entered the game after the coin derailed the $33,000 figure. The BTCUSD notched local highs in the $37,500 area to finish the day around $36,700. On Tuesday, the price came under renewed downside pressure, trying to hold above the $36,000 figure.
Buyer demand in the cryptocurrency market reemerged amid a recovery in US equity markets. Wall Street indexes bounced to finish higher overnight amid the oversold conditions. In a sign that risk sentiment keeps improving gradually, European stocks opened higher on Tuesday. However, as geopolitical uncertainty in Eastern Europe remains elevated and could escalate at any point, investors stay alert. In other words, the downside pressure in the global financial markets could reemerge at any point and thus push bitcoin lower as well.
BTCUSD needs to cling to $36,000 in order to avoid deeper losses in the near term. On the upside, a decisive recovery above the mentioned local highs would pave the way towards the $40,000 psychological level strengthened by the descending 20-DMA. However, it looks like the path of least resistance remains to the downside for the time being.
Bitcoin could get revisit the $33,000 figure in the short term to notch fresh multi-month lows before reversing north. On the downside, the immediate support now arrives at $35,000, followed by $33,000. Should the prices fail to hold above this level, the $30,000 mark will come back into the market focus. Of note, the intermediate support zone is represented by the ascending 100-week SMA, currently at $31,600. This region could prevent BTC from deeper losses if the potential bearish pressure appears to be measured.