Bitcoin needs to close above $40k for bulls to take control and change the bearish trend. The price was stuck near $40k for a while, and the bulls attempted to break the resistance multiple times but failed. And now there has been another correction, and Bitcoin has broken below $38k and is currently trading at $37.8k. It made a low of $37k, where the support pushed the price up.
Bitcoin needs to close above $40k
There are many key levels under $40k that are becoming difficult to break. On the hourly chart, there is the 100-EMA at $38.5k, which is expected to be a resistance for Bitcoin. At the same time, on the 4-hour chart, the 100-EMA moves to $39.5k. Staying above $37k is important, and if Bitcoin is able to acquire the $38.2k support again, then even better. There is a chance it gets rejected at that level and moves lower.
The $40k level has seen multiple attempts from the bulls, but it is just too strong, plus the market sentiment isn’t great either. Even though there has been a recent pump, the futures market shows that we are still not bullish. In order for Bitcoin to continue this bull run, closing above $40k on the daily and weekly charts will be critical. An even better scenario would be if Bitcoin closes above $40k, moves up and retraces back to confirm support, and finally makes an upward move.
Some important levels to look at below the $40k level would be $38.2k which is the 100-hourly SMA, $38.5k, and also $39.5k. Above $40k, we are looking at an initial resistance at $40.5k which will be important to clear while breaking the $40k level. Then we will be looking at $42k and $45k as the critical levels. If BTC moves above $45k, then a move to $49k is possible.
I am not being bullish until Bitcoin is at least able to clear the $40k level. And when it breaks past $45k, that’s where the real magic happens. Do you agree that in order for Bitcoin to continue its bull run, it needs to close above $40k? And what are your predictions when that might happen? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Binance donates $10M to Ukraine and opens emergency fund.
