The largest currency starts its day on a flat note near $40,000 and slides into a very tight range with no meaningful price action. Although, the current price action attracts the buyers for the fresh upside positions. In the previous session, BTC lost nearly 7% breaching the crucial $40,000 mark. The downside dangle shows strength around $40,100 to $40,300, and if it holds the areas, a bounce can be expected in the price at least in the short term.
- BTC Price trades in a range-bound manner following the previous day’s sell-off.
- On a broader framework, the formation of the ascending trend line provides the intimation of consolidation in the prices with a positive bias.
- However, the downside risk remains intact below $40,000.
BITCOIN prices stay below critical moving averages
On the daily chart, the price action suggests the buyers who hold long positions might get trapped for the past three sessions. Investors can expect Bitcoin to stabilize near the vital $40,000 level as it formed the double bottom formation. In addition to that, the formation of a ‘Doji’ candlestick suggests indecision among investors.
On the daily chart, the ascending trend line from the lows of $32,933.33 acts as support for the bulls. The price tested the bullish line twice on February 24 and April 18 respectively.
A renewed buying pressure would push the price toward the 50-day EMA at $42,046.38. This would encourage the bulls to take out the psychological $45,000 level.
The Relative Strength Index (RSI) is trading around the 40 levels that hover near the average line.
On the contrary, if the price closes below the session’s low it would first approach the $39,000 mark that also coincides with slopping line. Further, a sustained selling pressure would break the ascending trend line resulting in a fresh round of selling.
As of publication time, BTC/USD trades at $40,395 down 0.34% for the day.
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/markets/bitcoin-price-analysis-btc-price-trades-sideways-near-40000-whats-next-for-investors/