- Bitcoin’s price has been on a roller coaster of a ride throughout the past couple of weeks
- After rejecting above $40,000, the cryptocurrency faced massive inflows of selling pressure that sent it reeling down to lows of $30,000
- The support here proved to be significant and helped the cryptocurrency see further momentum
- One trader is now expecting Bitcoin to see significantly further short-term upside, noting that its fate depends almost entirely on its reaction to one key level
- If it can break above this level, it could spark a second wave of buying pressure that sends it significantly higher
After breaking below $40,000 last week, BTC saw a massive inflow of selling pressure that caused it to reel all the way down to lows of $30,000.
The buying pressure here was significant, allowing this level to be confirmed as long-term support. It is now struggling to break above this resistance, and its ultimate reaction to this level should provide serious insight into where it trends next.
Bitcoin Rallies Towards $40,000 as Sellers Retreat
At the time of writing, Bitcoin is trading up just under 7% at its current price of $39,800. The crypto has been hovering around this price level throughout the day, with sellers unable to spark any sustained rejection.
Where the market trends in the mid-term should depend largely on whether or not bulls can shatter the intense selling pressure that sits around $40,000.
Flipping this level to support could throw the entire market into a full-fledged parabolic rally.
It’s Do or Die for BTC as Bulls Test Crucial Level
One analyst explained that the region between $39,000 and $40,000 is crucial resistance, making it vital that bulls can shatter this level and spark a continued upside movement.
If this resistance is flipped to support, it could allow for significantly further upside in the days ahead.
“At a key zone here, want to see price break this level and continue to re-test the highs, which would be quite bullish,” he said while pointing to the below chart.
Image Courtesy of Josh Rager. Source: BTCUSD on TradingView.
The coming day should provide serious insight into Bitcoin’s mid-term outlook, as its reaction to $40,000 will set the tone for where it trends for the weeks to come.
Featured image from Unsplash. Charts from TradingView.
Back link Bitcoin Just Reached this “Key Zone” — Here’s What Analysts Say Comes Next https://cloudtokenplus.com https://cloudtokenplus.com