Bitcoin Tanks Below $40k, On-Chain Analysis is Still Bullish! Here’s What Next

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The most valuable cryptocurrency (bitcoin) after a one-day increase, briefly noticed a $40,000 comeback to prominence just a day ago.  Bitcoin began an anxious weekend at approximately $39,000 on Feb 26. On Saturday, Bitcoin remained relatively calm after a day of extreme volatility. The geopolitical volatility in Ukraine and Russia has generated a climate of heightened caution in the face of challenges that could result in current instability in the coming days.

Bitcoin flashes bullish outlook

On-chain BTC volume increased from 13.73 billion on February 19 to 46.38 billion on February 24. During the same time frame, the price of Bitcoin fell from $40,122 to $34,400. The differential alone indicates that this dip sparked a lot of interest among investors. As a result, it suggests accumulation.

On the 7th of February, after BTC fell from around $57,800 to $41,600, there was a similar rise in volume. Investors were busy buying the drop, as evidenced by the fractal pattern of the volume spike.

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The financing rate has been steadily increasing in recent years, reaching a new all-time high in early 2022. However, during the crisis, the financing rate plummeted to -0.00071 percent, revealing the traders’ mood. However, it is currently sitting around 0.001%, indicating that the king coin has an optimistic outlook.

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Bitcoin’s price has just dropped below $40,000 for the second time, with the coin trading at $38,669 at the time of writing. BTC/USD is currently battling to hold the $39,000 level; the next supports are anticipated to be $35,000, $33,000, and $31,000. If the coin begins to rise, it may rise past the upper border of the ascending channel, reaching resistance levels of $44,000, $46,000, and $48,000, all of which are considerably above the channel’s upper boundary.

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