- The price of Bitcoin has turned a rollercoaster ride in recent weeks
- After declining more than $ 40,000, the cryptocurrency faced a massive inflow of selling pressure that drove it to lows of $ 30,000.
- The support here turned out to be significant and helped the cryptocurrency see further momentum
- One trader now expects Bitcoin to see significantly more benefits in the near term, noting that its fate hinges almost entirely on its response to one key level.
- If it can break above this level, it can create a second wave of buying pressure that makes it significantly higher
Bitcoin and the aggregated crypto market have been caught in an intense bout of volatility in recent days and weeks.
After breaking under $ 40,000 last week, BTC saw a massive influx of selling pressure that caused it to plummet to a low of $ 30,000.
Buying pressure here was significant, confirming this level as a long-term support. It is now struggling to break above this resistance, and its eventual response at this level should provide serious insight into the following trends.
Bitcoin rallies towards $ 40,000 as sellers retreat
At the moment of writing, Bitcoin is trading just under 7% at the current price of $ 39,800. The cryptocurrency has been hovering around this price level all day, and sellers were unable to provoke sustained rejection.
Where the medium term market trends should largely depend on whether bulls can break the intense selling pressure that sits around $ 40,000.
If you flip this level to support, the entire market can go into full-blown parabolic rally.
It’s do or die for BTC as Bulls test Crucial Level
An analyst explained that the region between USD 39,000 and USD 40,000 is crucial resistance, making it vital that bulls can break this level and cause continued upward movement.
If this resistance is flipped to support, it could provide significantly more upward force in the coming days.
“In a key zone here, you want to see the price break at this level and continue testing the highs again, which would be pretty bullish,” he said, pointing to the chart below.
Image Courtesy of Josh Rager. Source: BTCUSD on TradingView.
The day ahead should provide serious insight into Bitcoin’s medium term outlookas his response to $ 40,000 will set the tone for trends for the coming weeks.
Featured image from Unsplash. Charts from TradingView.