Key Takeaways
- Bitcoin hit a low of $38,000 on Feb. 20.
- Further selling pressure could push prices to $37,000 or even $33,500.
- This support level must hold to avoid a sell-off to lower lows.
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Bitcoin appears to be shedding its recent gains as buyers dry up. The lack of interest in the spot markets could result in a deeper correction.
Bitcoin Falls Below Crucial Support
Bitcoin is struggling to find support while whales remain sidelined.
The number one cryptocurrency has broken below its psychological $40,000 support level to hit a low of $38,000 at press time. The downtrend appears to be driven by overleveraged traders in the futures markets. Meanwhile, whales on the spot markets appear to be waiting for the asset to drop lower before accumulating more tokens.
Roughly 67.6% of all accounts on Binance Futures are net-long on Bitcoin at press time. Data suggests that traders remain overconfident about the future price action as the BTC/USDT Long/Short Ratio has risen to a monthly high of a 2.08 ratio.
The optimism among traders can often create the…
