The longer-term outlook for BTC is getting brighter now despite the resurgent selling pressure these days
Earlier in the week, the bitcoin price advanced to the $45,000 figure in a three-day ascent from local lows. However, the coin failed to hold around three-week highs and came back under pressure as the bullish momentum has faded quickly. Early on Friday, the largest cryptocurrency by market capitalization briefly dipped below $41,000 to trim intraday losses in recent trading.
The BTCUSD pair has been deriving support from the 20-DMA, currently at $40,500. Should this moving average give up anytime soon, the digital currency will derail the $40,000 figure to suffer deeper losses in the coming days. The cryptocurrency market is falling along with traditional equity markets as risk aversion reemerged amid rising geopolitical tensions. Wall Street stocks fell on Thursday, with Asian and European equities following suit after Russia stepped up its attack in Ukraine.
However, the endless economic sanctions on Russia have put the spotlight on the potential role of cryptocurrencies globally. Against this backdrop, whales could get back to the market in the coming weeks and months. Of note, more than 13,000 transactions on the network exceeding $1 million have been made by whales in the last three days.
In other words, the longer-term outlook for BTC is getting brighter now despite the resurgent selling pressure these days. Should the coin fail to hold above $40,000, long-term buyers will likely bring bitcoin back on the bullish trajectory eventually. On the upside, the BTCUSD pair now needs to overcome the descending 100-DMA, currently at $44,500, in order to challenge this year’s highs in the $48,000 area, followed by the $50,000 psychological level. However, as bitcoin stays risk-sensitive for the time being, the prices will likely struggle to overcome this barrier at this point.