Bitcoin’s price is aiming for a rebound above $40,000, leaving traders uncertain about the BTC’s next direction.
FUNDAMENTAL OVERVIEW:
- On Thursday, Bitcoin recovered, surpassing $40,000 and indicating potential gains after a recent correction.
- Long-term Bitcoin holders moved over $430 million to exchanges during a dip below $39,000.
- Sentiment experts suggest that the current volatility in cryptocurrencies presents an opportune moment to adopt a contrarian position in Bitcoin.
The largest cryptocurrency, Bitcoin, has shown a deceleration in its decline since the inception of U.S. exchange-traded funds for the digital asset on January 11. It encounters a crucial test as a potential bottoming signal on its charts awaits confirmation.
Bitcoin experienced a setback following its peak at a two-year high of $48,989 on January 11. The asset declined to its 2024 low of $38,555 on Tuesday but has since started a recovery, reaching the psychologically significant level of $40,000.
The Securities and Exchange Commission’s (SEC) approval of Bitcoin Spot ETFs introduced volatility to crypto prices, causing a division among traders in their sentiment toward BTC.
Sentiment experts suggest adopting a contrarian stance to capitalize on the evolving trend in Bitcoin prices.
Bitcoin has experienced a drop exceeding 20% from its intraday peak of $49,021 coinciding with the initiation of ETFs. The initial enthusiasm for these products has now shifted to concerns regarding the actual level of demand for them.
BITCOIN TECHNICAL ANALYSIS DAILY CHART:
Technical Overview:
Bitcoin is currently trading within a down channel.
Bitcoin is positioned below the 20&50 Moving Average (SMA).
The Relative Strength Index (RSI) is in the Selling zone, while the Stochastic oscillator suggests a Positive trend.
Immediate Resistance level: 40452.33
Immediate support level: 38774.73
HOW TO TRADE BITCOIN
Following a sharp rise, Bitcoin encountered resistance and subsequently experienced a sudden and steep decline. Bitcoin is testing a crucial support zone, indicating a potential opportunity for selling on any subsequent upward movement.
TRADE SUGGESTION- Limit Sell– 41009.11, TAKE PROFIT AT- 38855.54, SL AT- 42793.49.