By Alicia Maher
Following the three-month rapid decline in which BTC lost 51% of its value, BTC is still struggling to stay above $40K.
BTC Ready for $40K Breakout
At its lowest point on 4th February, the value fell to $37,923, but it quickly climbed back to $39,515. Observers are now expressing their views on the asset’s most important influences and potential future price fluctuations, all the while keeping their fingers crossed.
BTC’s latest swing, as per Josh Olszewicz, head of research at Valkyrie Investments, BTC’s latest swing is a sign of how connected it has grown with traditional markets. He previously informed Forbes that BTC keeps correlating highly with conventional market indices, notably the S&P 500 and Nasdaq.
He says that before Bitcoin sees a substantial comeback off its 2021 level lows, legacy markets would probably have to sit quietly and consolidate. He does feel, though, that Bitcoin’s time for higher pricing is approaching, citing the CBOE Volatility Index, or VIX, as a predictor of projected volatility in the S&P 500. Long-term dip purchasing chances have always arisen when the signal is increased, as it is today.
Moreover, the expert points out that BTC’s RSI is oversold, implying that the value will shortly rise, similar to March 2021. Since the 200-day exponential moving average is presently at $48K, all recent RSI lows of this magnitude have promptly mean-reverted to that level. For the $48K mark, the annual pivot and VPVR resistance are also converging. Olszewicz continues.
Other technical analysts have indeed shared their thoughts on what the price may do in the days ahead. They include: All attention is focused on what seems to be an inter-day resistance trendline, as illustrated in the chart beneath. While a retracement along the trendline remains conceivable, he feels a break above it might raise values.
BTC/USD Chart Analysis
This graph demonstrates how BTC is struggling to go through $39K. It shows that $BTC has a chance to reach 44,000 – 46,000 before running into resistance again, he declares.
BTC/USD Chart. Source: TradingView
Others, like Nick Mancini of Trade The Chain, believe the value has built an ascending wedge structure. This trend, in theory, usually indicates imminent bearish activity. Nick, on the other hand, Nick believes that the present state of affairs is experiencing a reverse result — at least for the time being.
Assuming BTC could solidly break through the critical resistance level of $39K, he says it possesses sufficient room to go until it reaches the $41K mark. He predicts a retest after the value reaches $41K, with the value rallying further.