Bitcoin (BTC) Stays Below $40K; Why Recovery Might Encounter Hurdles

  • Bitcoin saw extended drops beneath the support levels of $40K and $39.5K.
  • The price hovers below $40K and 100-hour SMA.
  • The hourly chart shows a vital bearish line merging with $39.5K resistance (Kraken data).
  • The pair might see higher corrections, but $40K might limit further upside.

Bitcoin downswings saw the coin losing the vital support t $40K. Nevertheless, BTC corrects the losses but might encounter challenges around the $39.5K level.

BTC Price Still In Downtrends

Bitcoin price could not steady beyond the $42K support, triggering extended declines. The leading cryptocurrency traded under the $41.2K foothold, testing a bearish territory. However, the downswings saw momentum beneath the $40K mark and the 100-hourly Simple Moving Average. The coin even broke the support at $39.5K, exploring lower levels of $38K. For now, BTC corrects the losses while changing hands beyond the $38.8K mark.

Bitcoin tests the 50% Fibonacci retracement level of the latest fall to $38K lows from swing peaks of $40,450. Meanwhile, the initial resistance to the upside stands at $39.3K. The following hurdle stands at $39.5K. Also, BTC/USD’s hourly chart shows a vital bearish line emerging with $39.5K resistance.

The line sits near the 61.8% Fibonacci retracement area of the latest downside to $38Kk from $40,450. BTC primary resistance forms at the $40K mark. A decisive move past this level might trigger decent surges. BTC will have another resistance at $40,450 and 100hr Simple Moving Average, beyond which the token might climb toward $41.2K.

More Plummets in Bitcoin?

Bitcoin’s failure to recover past the resistance of $39.5K might lead to continued downswings. The crypto will discover the first support around the $38.5K zone. The following foothold stands at $38K. Losing this barrier might mean additional bearish strength, taking BTC towards the $36.8K lows.

The overall crypto spectrum contemplates recoveries after the latest fall. The global cryptocurrency market cap noted a 0.82% overnight surge, standing at $1.79 trillion. Keeping such developments might support Bitcoin’s revival. Nevertheless, bulls should prepare for hurdles amid the upside journey.

What are your thoughts about Bitcoin’s current conditions? You can leave replies in the comment area below.