Bitcoin recently broke the $40k resistance as it moves past all previous resistances but is unable to sustain at those levels. The quick move to $40k surely turned the FOMO mode on for a lot of bulls, but they got disappointed again. The price moved to $40.3k before tracing back and is now below $39k. It is difficult to say how many tries Bitcoin will take to break $40k, but the bulls are trying quite desperately.
Bitcoin is trying to break $40k
Bitcoin almost reached $40k thrice and broke past it only once. But we can safely say that it has been trying to retest the $40k level for quite a while. Even in the past 2 days, the price almost reached $40k 4 times and has retraced back every single try. The situation could very well be a fakeout, and we might see lower levels soon. The $38k support will be essential to look at because Bitcoin is already below $39k at present.
The current situation in Russia and Ukraine also calls for further risk aversion in crypto. There have been reports that if Russia uses crypto to evade sanctions, it could have a negative regulatory effect on the market. This could create further fear, and we could see an even lower fear and greed index value. At present, it is in the ‘concern’ zone with 26 points.
Even if Bitcoin does break $40k, I don’t see it going much far in the current market uncertainties. A little economic and political stability will be required if we want to see BTC moving up again. On the upper side, keeping an eye on $45.5k would be necessary as BTC retraced back from this level almost 2 weeks back. We have the EMA 100 at that level.
Just hodl!
With the current market situation, I don’t think it is a good idea to buy at these levels. We could move much lower, and in case such a thing happens, being prepared with funds is important. Yes, there could also be a swift upward move, but that looks unlikely to me. So, whatever your decision is, be prepared for high market volatility in the near term.
What are your thoughts as Bitcoin moves past $40k but is unable to sustain at those levels? And d you think we will break the level anytime soon? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Russia using crypto to avoid sanctions could pose regulatory risks.
