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The Bitcoin price dropped more than 3% over the past 24 hours to trade hands at $39,698.21 at press time as investors panic sell the leading cryptocurrency.
The Bitcoin Price Loses $40K Support
Daily chart for BTC/USDT (Source: TradingView)
The Bitcoin price dropped below the $40,160 support level over the past 24 hours and continued to trade below this crucial mark. Should it close today’s trading session below this significant price point, it may be at risk of continuing its negative trend in the next 48 hours. This could lead to the market leader falling to $38,000.
However, a break above the $40,160 level, which is confluent with the middle level of a medium-term descending price channel, may invalidate this bearish thesis. In this alternative scenario, the Bitcoin price could attempt a challenge at the $42,450 resistance level. A break above this threshold may then give BTC the foundation needed to continue its ascent to potentially reach as high as $44,430 in the short term.
Technicals Point Towards a Possible Change in Trend
Technical indicators on BTC’s daily chart suggest that buyers are re-entering the leading crypto’s charts. This is evident in the fact that the Relative Strength Index (RSI) line was closing in on its Simple Moving Average (SMA) line. Despite this, the Bitcoin price is still in a negative cycle, as the Moving Average Convergence Divergence (MACD) line is still positioned below the MACD Signal line. The slope of the MACD Histogram is leveling off, however, which may be the early signs of a bullish trend reversal.
If BTC’s bearish trend does undergo a bullish reversal soon, the Bitcoin price could break out of the negative price channel that has emerged on its charts in the last week. A potential early sign of this change in tides could be when the RSI crosses above the SMA line, as this would signal that bulls have gained an advantage against bears.
The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Ecoinimist is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
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