Technical Analysis of BTC/USD for April 12, 2022

Crypto Industry News:

After recovering at $2 trillion in late March, the cryptocurrency market capitalization returned below that threshold. This decline was influenced by today's bearish streak of nearly all major digital assets, particularly bitcoin.

The flagship digital instrument that has often led the market has been trading in red for the past seven days. Bitcoin fell from $45,860 to $40,900 during this time. This means a decline of more than 11% over the past week. According to data from CoinMarketCap, the bitcoin price also fell by 4.3% in the last 24 hours.

Along with the falling price, the market capitalization of the original cryptocurrency also suffered losses. Only 7 days ago it was at the level of USD 870 billion, but today it is only USD 777 billion.

Most of the other major digital assets have followed their leader recently. Consequently, the capitalization of the entire cryptocurrency market has dropped back below the $2 trillion mark and is now $1.9 trillion. This means a loss of approximately 11% over 7 days.

Technical Market Outlook:

The BTC/USD pair has broken below the key technical support located between the levels of $40,139 - $40,477 and made a new local low below $40k at $39,240. The next target for bears is seen at the level of $37,509. Only a sustained breakout above the level of $48,200 would change the outlook to more bullish and the down trend could have been terminated. The nearest technical resistance is located at the level of $42,133.

Weekly Pivot Points:

WR3 - $50,831

WR2 - $49,471

WR1 - $45,659

Weekly Pivot - $43,872

WS1 - $40,465

WS2 - $38,484

WS3 - $34,936

Trading Outlook:

The market still keeps trying to bounce after over the 60% correction was made since the ATH at the level of $68,998. So far Bitcoin bulls retraced only a 38% of the last wave down and reversed. When this level is clearly broken, the BTC is back to the up trend, otherwise the bearish pressure might push down the BTC towards the level of $29,254.