- Bitcoin’s price has been a roller coaster ride for the past few weeks
- After rejecting more than $ 40,000, the cryptocurrency faced a massive influx of selling pressure that brought it to lows of $ 30,000
- The support here proved significant and helped the cryptocurrency gain further momentum
- A trader now expects Bitcoin to see a clear further upward trend in the short term, noting that its fate depends almost entirely on its response to one key level
- If it can break above that level, it could trigger a second wave of buying pressure that makes it significantly higher
Bitcoin and the aggregated crypto market have been affected by intense volatility in the past few days and weeks.
After BTC dropped below $ 40,000 last week, the company saw a massive spike in selling pressure that caused it to drop to lows of $ 30,000.
The buying pressure was considerable here, so this level could be confirmed as long-term support. It is now struggling to overcome that resistance, and its final reaction to that level should provide serious insight into the next trends.
Bitcoin rallies toward $ 40,000 as a Sellers Retreat
At the time of writing, Bitcoin is trading just under 7% at its current price of $ 39,800. The crypto hovers around this price level throughout the day and sellers cannot trigger a persistent rejection.
Where the market trends should depend on in the medium term will largely depend on whether or not bulls can destroy the intense selling pressures of around $ 40,000.
Flipping this level in support could put the entire market in a full parabolic rally.
It’s Do or Die for BTC as a Bulls Test Crucial Level
One analyst said the region is a critical resistance between $ 39,000 and $ 40,000, so it’s important that bulls break that level and trigger a sustained upward move.
If this resistance is flipped in support it could allow for a significant uptrend in the coming days.
“In a key area here, you want to see price break that level and retest the highs, which would be pretty bullish,” he said, pointing to the chart below.
Image courtesy Josh Rager. Source: BTCUSD on TradingView.
The day ahead should provide some serious glimpse into Bitcoin’s medium-term outlook as the $ 40,000 response will set the tone in which trends will unfold for the coming weeks.
Featured image from Unsplash. TradingView charts.