Bitcoin went through a serious decline in the past weeks after testing a two-year high earlier this month. It has shown no signs of stopping yet as it may witness a bigger bloodbath in the upcoming weeks.
Last weekend came with a small relief for BTC after losing momentum throughout the week. It resumed bleeding overnight and lost 2% to a low of $40,364. It recovered fast from that low a few hours ago to where it is priced at around $40,800.
No doubt, the bears are back! The crucial $40,000 range, which has been acting as a solid defence line for the bulls over the past three months might collapse if the current bearish footing heats up. Of course, that range has been tested severally since last month, and as a result, we can expect a breakdown in the coming days.
It is essential to note that the much-anticipated correction is technically in play and as a result, Bitcoin may head towards the $33,000 – $32,000 support zone that flipped as resistance levels during the late 2023 bullish cycle.
The only hope for the bulls right now lies in the mentioned crucial range. If it produces a rebound once more, Bitcoin may retest some key broken support levels as resistance before it resumes bearish at full speed.
Following the market sentiments since the start of the month, the bears look more dominant, and for this reason, we can expect more sell-off until it reaches an exhaustion point.
Bitcoin’s Key Levels To Watch
The $40,254 level is currently acting as support on the daily chart. If Bitcoin falls through it to take down the crucial $40,000 level, the next support to consider for dips would be $38,509, $37,000 and $35,570.
If a rebound occurs, the closest resistance level to watch for a retest is $41,700. Higher resistance levels for recoveries are $43,579 and $45,567.
Key Resistance Levels: $41,700, $43,578, $45,567
Key Support Levels: $40,254, $38,509, $37,000
- Spot Price: $40,824
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news!
Image Source: fellowneko/123RF // Image Effects by Colorcinch
