Rally

Bitcoin

In the past month, the Bitcoin price has experienced a significant decline after reaching a 22-month high of $49,000. Currently, the largest cryptocurrency has fallen below the crucial <a href="https://www.newsbtc.com/bitcoin-news/bitcoin-expected-to-mirror-historical-trends-glassnode-sets-120k-price-prediction-for-2024/" target="_blank" rel="noopener ">$40,000 mark</a>, raising concerns about the prospects of the ongoing bull run and the overall bullish market structure.&nbsp; 
However, there are indications that the bottom of the current downtrend may be near, potentially setting the stage for a potential price reversal. 
<h2 id="bitcoin-price-to-avoid-plummeting-to-low-30-000s">Bitcoin Price To Avoid Plummeting To Low $30,000s</h2> 
Market analyst Marco Johanning sheds light on the situation, offering insights into the Bitcoin price movement. Johanning <a href="https://x.com/themarcojo/status/1749351608360579159?s=20" target="_blank" rel="noopener nofollow">suggests </a>that it won’t be long until Bitcoin reclaims the $41,500 level or potentially rises from a lower level if a specific scenario unfolds.&nbsp; 
According to Johanning, Bitcoin will finally encounter significant liquidity on the downside. Notably, the price has touched around below $39,000 multiple times, indicating the presence of substantial liquidity at these lows.&nbsp; 
Moreover, Johanning addresses the skepticism surrounding the price of around $37,800, arguing against widespread expectations of a drop into the low $30,000 range.&nbsp; 
Johanning emphasizes that the primary liquidity lies below $40,000 and is not in the low $30,000 range. Traders profited from the low $30,000 range have likely adjusted their <a href="https://www.newsbtc.com/bitcoin-news/bitcoin-price-mad-heavy-why-a-detour-to-30000-might-be-imminent/" target="_blank" rel="noopener ">stop orders</a> to protect their gains, creating a layer of support below the recent equal lows.&nbsp; 
As the price starts hitting these stop orders, automatic selling occurs, further down the price until it encounters significant buy pressure. The analyst points out a daily order block at $37,700 and high timeframe (HTF) support at $38,5000, indicating the potential for notable buy pressure in these price regions.&nbsp; 
Johanning also highlights the likelihood of filling <a href="https://www.newsbtc.com/news/bitcoin/when-bitcoin-price-new-ath/" target="_blank" rel="noopener ">Chicago Mercantile Exchange</a> (CME) gaps and Imbalances, with the next imbalance anticipated below $33,000. 
<h2 id="short-squeeze-rally-imminent">Short Squeeze Rally Imminent?&nbsp;</h2> 
According to Johanning, the prevailing sentiment reveals many bears waiting to short a <a href="https://www.newsbtc.com/news/bitcoin/analyst-foresees-bitcoin-downtrend-until-gbtc-is-liquidated/" target="_blank" rel="noopener ">market dump</a>. Johanning predicts that a short squeeze could occur once the price reverses, leading to a rapid price increase. 
In terms of Fibonacci retracement levels, Johanning suggests that since the Bitcoin price has already lost the $40,200 level, it could potentially fall to the 0.5% Fibonacci level, which coincides with those above the $37,800 level.&nbsp; 
Johanning speculates that the price may briefly touch $37,800 before closing above the HTF support level of $38,500, setting the stage for a potential upward movement. 
The recent <a href="https://www.newsbtc.com/bitcoin-news/bitcoin-puell-multiple-crucial-retest-save-rally/" target="_blank" rel="noopener ">downtrend </a>in Bitcoin’s price has raised concerns about continuing the bull run. However, market analyst Marco Johanning presents several key arguments supporting the possibility of a price reversal.&nbsp; 
<img loading="lazy" decoding="async" class="size-large" src="https://www.tradingview.com/x/wpK7xKcE/" alt="Bitcoin price" width="1814" height="858"> 
With Bitcoin’s current price at $38,900, there is a possibility of increased buying pressure in this region. The support wall at $38,5000 has demonstrated resilience thus far, and its performance will be closely observed.&nbsp; 
If the support wall fails to hold, the market will observe how the $37,800 price level performs and whether it aligns with the analyst’s thesis. 
Featured image from Shutterstock, chart from TradingView.com

Expert Analysis: Six Factors Suggest Bitcoin Price Won’t Drop Below $37,800

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