Bitcoin tanks below $41K as investors curiously look out for $40K support

Bitcoin price analysis for March 21, 2022, comes on a bearish note for the world’s biggest crypto as chances of a bullish breakout above $42K seem low. The $41K-$48K region has turned into a really sticky zone for BTC. With the entire crypto space wondering what the next step for BTC would be, we predicted in our Bitcoin price analysis for March 18 that $40K is an important support region for the token. However, we believe that a retest of $39K is certainly possible.

The data from CoinMarketCap shows that the trading volume of the token surged 7.26% in the last 24 hours, followed by a 2.59% decrease in the market cap. Moreover, the Volume / Market Cap has a value of 0.02767, while the Market Dominance has dropped to 41.98%. 

The daily candle for the token opened at a price of $41.2K and reached a daily high of $41.5K. On the other hand, the daily low for Bitcoin stands at a price of $40.4K. The price of 1 Bitcoin at the time of writing is $40.7K. 

Bitcoin price analysis for March 21 on the daily chart

Bitcoin price analysis for March 21, 2022, on the daily chart will include the following indicators in the crypto space, as seen in the chart below.

Source: TradingView

The MACD indicator shows that the MACD line and the signal line are coming close and the chances of a bearish divergence seem too high.

Moreover, the RSI indicator shows a value of 51.38 which means that the bulls are in control and the gradient of the line suggests that lower prices are possible.

The price action for Bitcoin is retesting the middle zone of the Bollinger Bands which means that investors can expect a drop towards $39K.

Conclusion

Bitcoin price analysis for March 21 ends on a bearish note for the token as chances of losing $40K are high and a retracement towards $39K is also possible.