Bitcoin price drops to $39,200, bringing BTC back into 'bear market' territory

Cryptocurrency markets began to sour on April 11 amid general weakness in financial markets around the world amid concerns about rising inflation, the prospect of another rate hike by the Federal Reserve and fears of global food shortages.

Data from Cointelegraph Markets Pro and TradingView showed bears breached bulls' defense line at $42,000 in early Monday trading hours, sending Bitcoin (BTC) to a daily low of $39,200, with some analysts expecting lower prices in the short term .

Here's a look at what analysts are saying about Monday's move lower and whether or not traders should expect more downside over the coming days.

Here's what analysts had to say about Monday's move lower, and whether traders should expect more downside in the days ahead.

$40,000 or breakout

A break below $40,000 was heralded by market analyst Michaël van de Poppe, who posted the following chart on Sunday, highlighting Bitcoin’s strength but also warning that “it’s the weekend and we still need to break through this resistance zone.”

Following Monday’s pullback, van de Poppe issued a follow-up tweet addressing the $43,000 rejection and suggesting the next level of support to watch. The trader said the "green zone" of the $43,000-$44,000 range needs to act as support for the bullish momentum to hold.

This bear market is 'different'

Offering insight into the confusion many crypto traders have experienced over the past year, decentralized finance advisor and anonymous Twitter trader "McKenna" posted the following chart looking at Bitcoin price action from April 2021 . "This is already the weirdest bear market I've ever seen," McKenna said.

McKenna said:

“I don’t even think we’re going to see prices below $30K, I’m more of a price swing in that range, it’s hell too. Just need to calm down and let my altcoins run.”

A similar sentiment was expressed by crypto analyst and anonymous Twitter user "360Trader," who posted the chart below, highlighting the range of consolidation Bitcoin has been trading in since November.

360Trader says:

“Bitcoin consolidation continues...Leverage is contained...Volatility is still drying up...This is not going to last forever. Put on the Band-Aid and keep going.”

Where is Bitcoin headed?

Market analyst and LookintoBitcoin founder Philip Swift offered a final bit of insight on the future of BTC price by posting the chart below, which shows the recent price rejection of the 1-year moving average (MA).

According to Swift, the 1-year moving average “has acted as a fulcrum for bulls and bears throughout Bitcoin’s history.”

Swift says:

"Until we get back to the 1-year moving average, it can't really be called a bull market."

The total market capitalization of cryptocurrencies is currently $1.874 trillion, with Bitcoin dominance at 41.4%.