The overall crypto market continues to trade mixed and threaten to fizzle the recent rebound attempt of Bitcoin today above the $39,000. Analysts, investors, and traders alike are becoming increasingly pessimistic about the market’s prospects. Fear Uncertainty Doubt is seen across the board in anticipation of future large losses in the crypto market, indicating that the market is still jittery and experiencing rapid swings. However, BTC is attempting to end its downward channel above $39,000 after 3rd consecutive month of decline. The first signs of a trend break are near the $40,000 psychological level, and the ability to develop gains over this level could signal the start of Bitcoin’s bull run again. At the time of analysis, the Crypto Fear and Greed Index showed that market sentiment was still fearful, with a score of 26 out of 100. This is an improvement over the previous day’s ”extreme fear.” Bitcoin (BTC) has gained 4.63 percent in the last 24 hours as per CoinMarketCap at an intraday high of $39,300. BTC/USD price is presently at $38,507.
Key Levels
Resistance Levels: $45,000, $43,000, $40,000
Support Levels: $37,000, $35,000, $32,000
BTC/USD Daily ChartBTC/USD has returned near the horizontal $40,000 psychological zone following its recent bounce off 3-months low level at $32,933. Although the descending daily moving average (MA 200) defends a bearish outlook, the horizontal moving average (MA 200) backs a sideways trend. This could be a sign that a bigger price move is near.
In a negative scenario, initial downside friction could occur near the horizontal level at $40,000. Then the support base of $37,000 – $35,000, which was established by troughs around the 3-months low levels, might be tested. If bearish forces persist despite this strengthened floor, the price may slide toward the key support section at $32,000.
BTC/USD 4-Hour ChartOn the 4-hour time frame, BTC/USD marked yet higher highs and higher lows since its rebound from $32,933 low as an effort to return up lingers. Moreover, the short-term moving average (MA 50) is closing the gap with the moving average (MA 200), and if the former manages to cross above the latter, it could bolster the case for a positive outlook.
The relative strength index (RSI) holds just over the 50 neutral zones, indicating a mixed outlook from short-term momentum indicators. Despite being in negative territory, the BTC/USD price has crossed above the MA 50, indicating that the negative momentum may be fading. Buyers would have to break the 4-hour moving average (MA 200) for the outlook to shift.
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