Choose country & language:

Bitcoin struggles to maintain the $40,000 level

Home >  Daily Market Digest >  Bitcoin struggles to maintain the $40,000 level

Written by:
Myrsini Giannouli

13 April 2022
Share the article

Major Cryptocurrency prices are declining, pushed down by increased risk-aversion sentiment, as well as by a shift of major central banks towards a more hawkish fiscal policy. 

The shift of major central banks towards a more hawkish fiscal policy has been putting pressure on cryptocurrencies. Most major Central Banks are turning towards a tighter policy and a return to pre-pandemic interest rates, driving cryptocurrency prices down. Increasingly hawkish Fed rhetoric in the past couple of weeks is pointing to a steep rate hike at the Fed’s next policy meeting in May, putting pressure on cryptocurrencies. 

On Tuesday, record-high inflation data in the US have increased the odds of a 50 base points increase in the Fed’s benchmark interest rate in May. On the other hand, investors are starting to use cryptocurrencies as a hedge against inflation, which could provide a boost to crypto markets, as inflation is expected to peak in the following months.

Reports of renewed Russian attacks against Ukraine have dashed hopes for a diplomatic resolution to the conflict any time soon, putting pressure on risk assets. New western sanctions on Russia are also reducing demand for risk assets, with both the US and the EU announcing a new round of sanctions, targeting financial institutions, commodities and individuals. 

Over the weekend, the Luna Foundation Guard (LFG), acquired $173 million in bitcoin, boosting its price a little, although it could not prevent the bears from gaining ground this week, driving BTC's price down.

Bitcoin price fell below the $40,000 level on Monday, as many market participants turned towards safe-haven assets and continued falling on Tuesday, struggling to maintain the $40,000 level. If Bitcoin price declines further, it may find support at $37,500 and $36,000, while resistance may be found near $48,200 and further up at the psychological level of $50,000. 

Ethereum's price has been boosted over the past couple of weeks, as the release of a long-awaited software upgrade is drawing near. Ethereum price also tumbled on Monday however, falling below the $3,075 level support and fell as low as $2,950 on Tuesday. In case its price continues to decline, it may find support near $2,820, while resistance may be encountered near $3,800.

BTC/USD 1h Chart

BTCUSD 1hr chart


ETH/USD 1h Chart

ETHUSD 1hr chart

The content provided in this material and/or any other material that this content is referred to, whether it comes from a third party or not, is for information purposes only and shall not be considered as a recommendation and/or investment advice and/or investment research and/or suggestions for performing any actions with financial products or instruments, or to participate in any particular trading strategy and cannot guarantee any profits. Past performance does not constitute a reliable indicator of future results. TopFX does not represent that the material provided here is accurate, current, or complete and therefore shouldn't be relied upon as such. This material does not take into account the reader's financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of TopFX, no reproduction or redistribution of the information provided herein is permitted.

Written by:
Myrsini Giannouli

Share the article:

Latest news

Dollar plummets in the aftermath of Silicon Valley collapse

Myrsini Giannouli 14 March 2023

Gold soars as investors turn toward safe-haven assets

Myrsini Giannouli 14 March 2023

Oil prices turbulent amidst market chaos

Myrsini Giannouli 14 March 2023

Crypto markets volatile after Silicon Valley Bank collapse

Myrsini Giannouli 14 March 2023

Why TopFX



industry presence
as a Liquidity Provider


from 0.0 pips

and reliable execution



client funds



customer support

Open your Live Account in 3 Steps
Step 1

Fill in the registration
form and click
"Create account".

Step 2

Once you are in the client secure area, please proceed with uploading your Proof of Identity and Proof of Residence.

Step 3

When your live account is approved, you can deposit funds and start trading on your chosen platform!