Bitcoin (CRYPTO: BTC) is trading lower Thursday and will need to see a bounce off a key level. The crypto is trading in a sideways channel and has fallen to the $40,000 support level.
Bitcoin was down 8.60% at $40,692.75 Thursday afternoon at publication.
Bitcoin Daily Chart Analysis
- Bitcoin is falling back toward the $40,000 level and wants to bounce back. If the crypto can hold this level it may start pushing more bullishly as it is forming higher lows. Resistance may be found near the $60,000 level. If the crypto falls below the $40,000 support, it may not find another strong area of support until it reaches the $30,000 level.
- The crypto crossed below the 50-day moving average (green) and trades below the 200-day moving average (blue). This shows the crypto is trading with bearish sentiment and each of these moving averages may hold as an area of resistance in the future.
- The Relative Strength Index (RSI) saw a drop Thursday down to 47, pushing the RSI below the middle line. This means that there is currently more selling pressure in the crypto than there is buying pressure. Price may continue to fall if the RSI keeps dropping, and price may bounce off support if the RSI can cross back above the middle line.
What’s Next For Bitcoin?
Bitcoin is approaching a key time where it will need to have a bounce off a level: If it can hold above the $40,000 level, it may continue to see bullish movement in the future. A break below the level could hint the longer-term bearish trend is not yet over and could bring about more bearish movement. Bullish traders are looking for higher lows and want the crypto to cross above the moving averages and head toward the $60,000 level. Bearish traders want to see the crypto dip below the $40,000 level and have the RSI continue to push lower toward the oversold region.
