- Bitcoin’s price has been on a roller coaster of a ride throughout the past couple of weeks
- After rejecting above $40,000, the cryptocurrency faced massive inflows of selling pressure that sent it reeling down to lows of $30,000
- The support here proved to be significant and helped the cryptocurrency see further momentum
- One trader is now expecting Bitcoin to see significantly further short-term upside, noting that its fate depends almost entirely on its reaction to one key level
- If it can break above this level, it could spark a second wave of buying pressure that sends it significantly higher
Bitcoin and the aggregated crypto market have been caught in the throes of an intense bout of volatility throughout the past several days and weeks.
After breaking below $40,000 last week, BTC saw a massive inflow of selling pressure that caused it to reel all the way down to lows of $30,000.
The buying pressure here was significant, allowing this level to be confirmed as long-term support. It is now struggling to break above this resistance, and its ultimate reaction to this level should provide serious insight into where it trends next.
Bitcoin Rallies Towards $40,000 as Sellers Retreat
At the time of writing, Bitcoin is trading up just under 7% at its current price of $39,800. The crypto has been hovering around this price level throughout the day, with sellers unable to spark any sustained rejection.
Where the market trends in the mid-term should depend largely on whether or not bulls can shatter the intense selling pressure that sits around $40,000.
Flipping this level to support could throw the entire market into a full-fledged parabolic rally.
It’s Do or Die for BTC as Bulls Test Crucial Level
One analyst explained that the region between $39,000 and $40,000 is crucial resistance, making it vital that bulls can shatter this level and spark a continued upside movement.
If this resistance is flipped to support, it could allow for significantly further upside in the days ahead.
“At a key zone here, want to see price break this level and continue to re-test the highs, which would be quite bullish,” he said while pointing to the below chart.
Image Courtesy of Josh Rager. Source: BTCUSD on TradingView.
The coming day should provide serious insight into Bitcoin’s mid-term outlook, as its reaction to $40,000 will set the tone for where it trends for the weeks to come.
Featured image from Unsplash. Charts from TradingView.