Bitcoin, which was trading around $39,000 for a pretty long time, has finally lost support and plunged below these levels. The asset is looking pretty bearish in the short term as it dropped below the crucial support at the $40,000 mark.
The $39K mark acted as a strong resistance and support in the past and therefore, the BTC price must reclaim these levels in the upcoming hours to maintain the uptrend.
It has been noticed for a long time that the BTC price has been flipping hard each time it makes a larger move in either direction. And hence it is very important for the asset to reclaim these positions at the earliest. If the price tests these levels, it may end up breaking above these levels which may uplift the price above the $40,500 mark.
As mentioned in the chart, the BTC price is hovering in between crucial targets on either side, one at $39,609 and the other at $38,264. The price needs to break either of the sides at the earliest to induce some volatility. In case, the price breaks through the upper resistance, then it may hit its first target of $40,405.
Or if in case, it faces a rejection here the levels below at $38,100 may be tested but may not hold strong. Therefore the lower levels at $37,300 may be the only hope which could be tested. If the volume is not supportive, then the crucial support close to $36,000 may be tested.
Bitcoin is currently trading below some important levels and appears to be pretty bearish in the short term. Currently, the asset’s next move is pretty uncertain as it is a little tough for the asset to determine the next move.
If the asset moves towards the south, it may be an indication for a major correction incoming for the asset that may trap the price within the bearish trend for some time. Yet it may be pretty risky to place any trades on the asset.