The overall crypto market is down 1% today with Bitcoin dropping to its lowest level in two weeks. It has recovered briefly in the past hours but is likely to resume selling soon. Its dominance against altcoins currently stands at 52.1%.
Bitcoin appeared to have finally suspended bullish after rejecting $43,500 last week. Before then, it reached a peak of $44,000 but later faced resistance after almost doubling its price in three months.
Last week saw the price close under the $41,000 level after failing to advance higher. The leading cryptocurrency opened short today and tumbled to $40,542 earlier today.
The price quickly bounced above $41,000 following the New York session opening a few hours ago. If the sellers release pressure again, BTC price may plunge and close today’s price at the crucial $40,000 level.
On the other hand, a continuous increase may bring more recovery to the market. A bullish formation (possible double-bottom pattern) above that crucial level could fuel a fresh increase in the short term.
With the current negative sentiments surrounding Bitcoin, more breakdowns should be expected. A bigger picture on the 4-hour chart shows that the current shift in trend is likely to trigger a big sell-off in the coming days.
Bitcoin’s Key Levels To Watch
In the next drawdown, the potential support level to watch for a drop is $40,200. A dip below the crucial $40,000 level could bring more drawdown to $39,000 and $38,500, retesting the channel’s upper boundary as support.
Considering a strong rebound above $41,000, Bitcoin would first reclaim $42,000, $42,827 and $43,500 respectively. The $44,700 level remains a key resistance to watch for a breakup.
Key Resistance Levels: $42,827, $43,500, $44,700
Key Support Levels: $41,000, $40,200, $39,000
- Spot Price: $41,350
- Trend: Bullish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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