Bitcoin price remains stuck with no signs of directional bias. It is currently trading below the downtrend channel that was formed on March 1 and below the 200 EMA located around the psychological level of 40,000 and above the 4/8 Murray at 37,500.
The support area of 4/8 Murray (37,500) could be overcome by bearish pressure. During the last few months this level acted as a strong bottom that prevented a prolonged fall in BTC.
A daily close below this level could accelerate Bitcoin's decline towards the bottom of the downtrend channel and towards 2/8 Murray which coincides with the level of Feb 23 at 34,300.
The last candles that are forming since March 4 means that the market is consolidating waiting for some fundamental data that could cause the price movement in both directions.
A daily close above the psychological level of 40,000 could again expect a move higher towards the zone +1/8 Murray around $45,312.
On the contrary, a sharp break below the support 2/8 Murray located at 34,300 could cause a drop to the psychological level of $30,000 and 28,000.
Technically, Bitcoin is still in a downtrend. The economic and geopolitical context prevents the bulls from making large purchases of these assets. It looks like BTC investors will remain on the sidelines until tensions ease. If the geopolitical situation worsens, risk assets could suffer and BTC could drop towards the level 30,000 and even 25,000.
According to analysts, the future of BTC looks dark as investors fear stagflation for the eurozone and that it could spread to the whole world. The bearish trend will continue to prevail and could further affect Bitcoin, leading to a breakout to the downside.
In the coming hours we are confident that the support at 4/8 Murray will continue to show its strength which will give us an opportunity to buy with targets on the 200 EMA around 40,034.
