After yesterday’s decline in the price of Bitcoin below $39,000, the bears still made a successful attempt to return the price above $40,000. They managed to bring the price closer to $41,000, but after experiencing high pressure, the BTC price returned to the 40,600 area. Although if you look at the daily chart, you will see that the pair is trading in an upward channel. And the level of 40,000 is the lower limit of this ascending channel. Analysts see this decline as a continuation of a correction after a two-week rally in March. Also, analysts believe that investors are preparing for a new Bitcoin rally. This is indicated by the fact that investors bought 39,536BTC coins last week while selling only 11,000 BTC.
With a bounce above 40,000, the BTC/USD pair has risen above the 100-hourly moving average, which is providing support around 40,200. However, the hourly chart shows that BTC/USD is trading in the 38,800-41,500 range. Thus, these levels will be the main support and resistance in the next cycle.
In the current situation, the BTC/USD pair will face the nearest resistance in the 40,900 area. Overcoming this level will allow the pair to rise to the upper border of the range, 41,500. A break above this level will let the BTC/USD pair start new growth. If the bulls manage to build on the success, we will see the movement of the BTC/USD pair around 42,500 and further in the area of important resistance at 43,200.
If yesterday’s attempt by the bulls to return the price of Bitcoin above 40,000 turns out to be short-lived, we will see the movement of the BTC/USD pair to the nearest support area of 40,600. Then the pair will try to gain a foothold in the 40,000 area. A breakdown of this level will send the BTC/USD pair to the 38,800 area.