Bitcoin

If Bitcoin breaks above $40,000, that will be the next level to watch

Bitcoin has endured some volatile days over the past week and faced its first serious geopolitical conflict in its entire existence.

Macro concerns have not cooled yet, but given the past few days, Bitcoin has surprised many investors as it bounced back from $34,000. This buying pressure came from exchanges FTX and Bitfinex, pushing the price to $40,000. This also correlates with Wall Street’s turnaround on Thursday (Nasdaq posted a 7% gain on the day).

The uncertainty and fear in the market and the positive momentum of the price movements are building a trading range between $34,000 and $40,000 for Bitcoin.

Technical Analysis

Medium and long term

Bitcoin is currently facing a new “challenge” in its short life: a geopolitical crisis. The Russia-Ukraine conflict has created extreme fear in all markets; As a result, risk assets began falling en masse Thursday morning.

The price even broke below $36,000 within a few hours, but Bitcoin surprised investors. It looks like the big players created massive buying pressure (mainly on Bitfinex), propelled the price above $36,000 and then a big rally towards $40,000.

However, it failed to move higher as the daily chart printed a green candle with two long wicks on either side. To sum up, the area between $40,000 and the 50-day SMA is the key area of ​​resistance right now.

If the price breaks this zone, the next key level to watch is the area between $46,000 and the 100-day SMA. On the upside, there will be a retest of $36,000 support if the price rejects.

Onchain analysis

After bitcoin rallied and touched its previous high of $44,000 mid-month this month, it was rejected and started another downtrend that sent open interest lower.

Last Thursday, Bitcoin experienced tremendous price volatility, resulting in a massive LONG/SHORT liquidation. This liquidation is necessary for the market to reduce the high leverage contracts used in the futures market.

After the price movement, the estimated leverage and open interests have decreased. Open interest has hovered around multi-month lows, increasing the likelihood that Bitcoin will continue its uptrend. However, the market’s estimated leverage ratio has not fallen as much as open interest, suggesting that large liquidations could continue in the medium term.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

Detroit Crypto Payments To Be Accepted For City Taxes

Detroit will become the largest U.S. city to accept crypto payments for taxes and fees…

1 min ago

Trump Team Considers Robinhood Chief Legal Officer For SEC

Trump's transition team is considering Robinhood Chief Legal Officer Dan Gallagher for SEC chair, with…

11 mins ago

Schneider Electric Hit By Hellcat Ransomware In Data Breach

Schneider Electric faced a Hellcat Ransomware attack demanding $125,000 in Monero, threatening to release 40GB…

31 mins ago

Ethereum Foundation Report 2024 Asset Reserves And Strategy

Ethereum Foundation Report 2024 reveals asset reserves of $970.2M, with $788.7M in crypto (99.45% ETH).…

43 mins ago

6 of the Best Cryptocurrency to Buy Now

Cryptocurrency is having another big moment. With financial systems evolving and digital coins gaining real-world…

1 hour ago

New Detroit Tax Payment Option Will Support Crypto by 2025

Starting in mid-2025, Detroit tax payments will accept cryptocurrency, facilitated through PayPal's secure platform.

2 hours ago

This website uses cookies.