Bitcoin Price Prediction: BTC Eyes $40,000 As Markets Recover

Daily Bitcoin BTC Technical Analysis

Last Updated February 24th 2022
6 Min Read
  • As buyers look to push BTC higher, the Bitcoin price is up by over 1% during the ongoing session. 
  • BTC had pushed up significantly on Monday, reversing and rising by over 3%. 

The Bitcoin price is eying the $40,000 levels as BTC inches near $39,000 with sellers in control of the market. BTC was quite bearish over the previous week and had ended the weekend at $38,382. Monday saw the bearish sentiment continue, as BTC fell back by over 3%, dropping to $37,054. However, BTC recovered on Tuesday, rising by over 3% and moving to $38,262. The current session sees BTC at $38,820. 

Bitcoin Price Chart Indicates BTC Could Push Towards $40,000 

The Bitcoin price started the previous week on a positive note, rising by 1.08% on Monday. BTC continued to push higher on Tuesday as it rose by almost 5% and moved to $44,536 but fell back on Wednesday, dropping by 1.46%. BTC continued to drop on Thursday, as the price crashed by almost 8%, falling below 20 and 50-day SMAs and settling at $40,549. The price remained in the red on Friday, dropping by 1.30% and falling to $40,023.

Image: BTC/USD daily

BTC/USD daily chart 022422

Despite the bearish sentiment, the Bitcoin price registered a marginal recovery on Saturday. However, BTC fell back in the red on Sunday, falling by over 4% and ending the weekend at $38,382. The Bitcoin price continued to drop on Monday, falling by 3.46% and settling at $37,054, before making a strong recovery on Tuesday and rising by 3.26%, moving to $38,262. The current session sees BTC up by almost 2%, as buyers look to push BTC above $39,000.

We can see that the MACD is bearish, but if BTC continues to push higher, we could see it flip to bullish.

IntoTheBlock’s IOMAP for the Bitcoin price shows us that BTC has strong support at around $38,280. At this price level, over 900,000 addresses have bought more than 770,000 BTC. BTC also faces strong resistance at around $39,549. At this price level, over 720,000 addresses have sold more than 681,000 BTC.

Image: IntoTheBlock

BTC/USD volume chart 022422

More On Bitcoin: What Might Happen If You Invest $100 In Bitcoin Today?

The 4-hour Bitcoin price chart shows us that BTC had dropped to $40,549 on the 18th. BTC remained bearish after dropping to this level, falling below the $40,000 level and the 200-bar SMA and settling at $39,878. With the 200-bar SMA now acting as resistance, BTC was unable to move past this level and fell back, dropping to $38,313 on the 20th. BTC pushed to $39,331 from this level, but with the 20-bar SMA acting as resistance, BTC fell back, dropping to $36,588 on the 22nd. BTC made a strong recovery from this level, pushing past the 20-bar SMA and moving to its current level of $38,831.

We can see that the MACD and Parabolic SAR are both bullish, indicating that we could see the price push higher.

Image: BTC/USD 4-hour

BTC/USD 4-hour chart 022422

Canadian Regulators Demand Crypto Exchanges Not to Promote Self-custodial Wallets

The Royal Canadian Mounted Police (RCMP) are investigating whether tweets by the CEOs of cryptocurrency exchanges Coinbase and Kraken that pushed for self-custody of digital assets violated the sanctions put in place to quell trucker protests against Covid-19 restrictions in Canada.

The Canadian securities regulator, the Ontario Securities Commission (OSC), reported the tweets to the federal police on the grounds that it felt the crypto executives were providing advice on how to circumvent the restrictions put on the funds, according to a report from The Logic.

Notably, Twitter accounts of Kraken CEO Jesse Powell and Coinbase CEO Brian Armstrong expressed their dissatisfaction with the invocation of the Emergencies Act and their support for non-custodial cryptocurrency wallets, with Armstrong pushing his company’s product.

Armstrong tweeted:

“Concerning to see stuff like this happening in any country, especially such an economically free place like Canada.”

Powell wrote: 

“Please do not fund causes directly from custodial wallets. I’m sure freeze orders are coming. Withdraw to non-custodial before sending.” 

Generally, it is more difficult for law enforcement to confiscate or freeze money in non-custodial wallets since they are held by a person rather than a third party like a cryptocurrency trading platform.

This was highlighted in a recent Finbold report when the Ontario Superior Court of Justice sent Nunchuk a self-custodial Bitcoin wallet a Mareva Injunction, ordering it to freeze and disclose information about the assets involved in the Freedom Convoy 2022 campaign.

Bitcoin Crashing To $30,000 Is Almost Inevitable, Says Bloomberg Analysts As Gold Outperforms BTC

As the current bearish trends in the crypto market attract attention, the main question is what the lowest point of this correction could be. Bloomberg analysts believe that $30,000 appears to be the most probable price level under the present market conditions. 

This is due to the inability of the BTC price to remain above the previous support level at the range of $37,000-$38,000. John Roque of 22V Research, in a note to Bloomberg, said:

 “In the globe’s latest maelstrom — U.S./Russia/Ukraine — Bitcoin, the asset purported to be the answer to every question, has quietly weakened and is notably underperforming its arch-enemy, gold.”

Roque predicted Bitcoin might slip below $30,000, a level it hasn’t seen since July, as traders increasingly favor gold, potentially pushing the precious metal to an all-time high. Therefore, the bearish tendencies should continue to prevail in the following days, even if some correction or stabilization occurs in the short run. The historical evaluation of Bitcoin’s price dynamics confirms that the price level of $27,000-$30,000 may be viewed as the major support in terms of the premier cryptocurrency’s dynamics within the past two years. 

For this reason, a further price decline to $30,000 is perceived as being almost inevitable by most market pundits. However, the subsequent price changes can follow one of these scenarios: either the formation of a new bullish cycle from the $30,000 level or the uncontrolled price decline after the break of the major support level. The likelihood of the second scenario prevents many crypto investors from opening their long positions at the moment.

More On Bitcoin: Bitcoin (BTC) Price Prediction

Major U.K. Law Firm Starts Accepting Payments in $BTC, $ETH, $DOGE, $ADA, and Other Cryptos

Major U.K. law firm gunnercooke has started accepting payments in most major cryptocurrencies for legal and professional services. The firm accepts leading crypto assets like Bitcoin (BTC) and Ethereum (ETH), but also smaller altcoins like Cardano (ADA) and Dogecoin (DOGE).

According to an announcement the law firm published, it is now accepting crypto payments through Coinpass, an exchange registered with the Financial Conduct Authority (FCA), and added $DOGE, $ADA, $XTZ, $EOS, and $UNI to its platform late last year.

The firm said: 

"We’re delighted to announce that we are now the first major UK law firm to officially accept payment in cryptoassets. We’ve partnered with @coinpassglobal to make the exchanges and have now accepted our first payment from client @AttestantIO."

The announcement noted that the law firm has a client base of “around 100 cryptocurrency developers, platforms and exchanges,” and that Attestant was the first to pay gunnercooke for its legal consultancy services in crypto.

Attestant reportedly paid for the services with ETH, with gunnercooke detailing it “advises Attestant on a range of legal and regulatory matters related to staking." Naseer Patel, gunnercooke’s finance director, was quoted saying:

"Up to now, only a few US law firms allow for cryptoasset payments so we are proud to be at the forefront of innovation in the UK. We will now be able to work with a wider variety of clients across different jurisdictions, plus offer our partners the flexibility to be paid securely in the way they choose."

Bitcoin Price Is Expected To Reach These Levels

Looking at the Bitcoin price chart, we can see that BTC has pushed up considerably over the past couple of sessions, given its recent bearish trend. If the current sentiment persists, we could see BTC push past $39,000 and towards $40,000.

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