Once again, the cryptocurrency market failed to start a recovery. After the price of Bitcoin dropped below $40000, it was still able to bounce back. The BTC price even showed an increase above $41000, but that was all. As it approached the resistance level of 41300, the pressure began to increase and the candles became shorter. As a result, the bulls couldn’t continue the recovery, so the bears seized the initiative and again sent the price of Bitcoin below $40000. At the time of publication, the BTC price still recovered above $40000.
Investors are still concerned about the geopolitical situation in the world, which encourages them to get out of risky assets. In addition, a possible increase of the rate by 0,5% at once makes Bitcoin less attractive to investors.
On the 4-hour chart, the BTC/USD pair is trading well below 50 and 100MA. Around the 37000 and 34000 levels, there is a high demand for Bitcoin. Thus, these levels will become strong support levels for Bitcoin if the price continues to decline. Moving the price of Bitcoin above 37000 will help it quickly recover to the resistance level at 45000. In the case of a decline below 37000, the BTC price risks falling to the range of 34000-33000 dollars.
The 40000 level is an important level for bulls and bears. If the BTC/USD pair manages to overcome the resistance area of 40000-40200, the pair will try to break through the resistance around 41300 again.