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.

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.

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.