Bitcoin over the weekend was seen trading below its critical price support as broader market weakness continues. Traders’ confidence in the asset has remained quite low considering the selling pressure in the market.

The prices have currently plummeted owing to the news of the Federal Reserve hiking its interest rates. Bitcoin has also displayed profit booking on charts. This could be the reason why prices are falling further. If the asset fails to remain above the $38,000 price level, a short-term downslide could occur.

Bitcoin is currently trading in bearish sentiment, however, charts have something else to say. Many bullish divergences were spotted on charts in different time frames.

Bullish divergences amount to bullish sentiments. This means that over the long run Bitcoin can recover and trade above immediate resistances.

Bitcoin Price Analysis: One Day Chart

Bitcoin
Bitcoin was priced at $38,956 on the one-day chart. Image Source: BTC/USD on TradingView

Bitcoin was trading at $38,956 at the time of writing. Immediate resistance for the coin stood at $40,000. A fall below the current price level would mean BTC would trade near the $38,000 price level.

A fall from $38,000 could result in BTC trading at $31,000. In case there is a price reversal after breaking $40,000 then BTC could aim for $42,000.

The volume of Bitcoin trading had dropped in the last trading sessions, however, the bars were seen in the green. This could mean that buying pressure was seen returning to the market.

Related Reading | Bitcoin Price Continues Struggle, But Miners Refuse To Sell

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