Analysts identify $40K as the make or break it level for Bitcoin price
The analyst community has consistently stated that the $40K level of Bitcoin price is the level where the price is going to either break or hold it up. For Bitcoin to have any chance of living up to its promise as a new world currency, it needs to break above that level. At the same time, the price must not drop below it. (Source: Bloomberg)
Bitcoin’s price has had a rollercoaster ride since it peaked above $20,000 last December. Although it has been on a downward trajectory since January, it appears bullish momentum is prompting some investors to reassess the next major level of support according to a recent analysis.
The price of Bitcoin has been on a rollercoaster ride this year. It started off at around $1,000 in January, before collapsing to a low of $1,100 in early February. At its peak, Bitcoin’s price topped $1,400 in May. This week, however, Bitcoin has retraced to the $1,000 mark, and some analysts are now arguing that the top is in. This would mean that Bitcoin’s price is now at a level where the market is either bullish or bearish.. Read more about bitcoin price prediction and let us know what you think.
Bullish optimism is the dominant emotion of the day as Bitcoin’s (BTC) price returned to the psychologically significant $40,000 mark.
Aside from the turnaround from this week’s local low of $37,500, Gary Gensler, the chairman of the US Securities and Exchange Commission, made favorable remarks about the crypto sector and reiterated the aim of eliminating fraud in the ecosystem.
4-hour chart of BTC/USDT. TradingView is the source of this information.
Here’s what experts and traders are saying about Bitcoin now that it seems to be on the verge of reaching $40,000.
Traders are watching for the price of $40K to shift from resistance to support.
Many traders consider $40,000 to be a critical milestone for Bitcoin, and how it performs from here may decide whether the market begins another bullish phase or just refuses to revisit underlying support levels.
The $40,000 price objective is near to the 200-EMA, as noted by the pseudonymous crypto Twitter analyst Rekt Capital, and it is critical that Bitcoin achieves a few closes above this moving average.
If the current #BTC gain is only a relief rally to revert the 200-day EMA to resistance,
If Bitcoin fails to maintain this level, the next support zone may be the 50-day EMA around $26,723. If BTC fails to stay above this level, it is more likely that it will go back to its July lows.
According to Rekt Captial:
“If BTC fails to recover the 200-day EMA shortly, it will revert to resistance, rejecting price to the mid-$30,000s.”
Bitcoin is on the verge of becoming a’make or break’ currency.
The significance of a strong BTC close over $40,000 was also emphasized by Twitter analyst Fomocap, who identified the $40,400 price mark as a significant place to monitor in the following tweet.
Bitcoin has to close above $40,400 to cement the uptrend, according to Fomocap, and rejection at this level opens the door to a return to the $30,000 area.
The following levels of support below $37,000, according to the chart, are $34,300 and $32,000.
According to a recent study, panic selling is the most common error made by cryptocurrency investors.
Even if Bitcoin reaches $40,00, traders will remain undecided.
Even if the $40,000 level is recovered, traders will walk carefully due to the indecisiveness that characterized Bitcoin pricing during July.
At $37k, Bitcoin is in a bear market and has failed as a store of value; we’ll see you at $20k.
At $39,500, Bitcoin is the ultimate inflation hedge and the best store of wealth; we’ll see you at $100,000.
August 4, 2021 — Joseph Young (@iamjosephyoung)
As things stand now, a more definitive breakthrough of Bitcoin price through the $40,000 to $43,000 resistance cluster is required before traders acquire confidence to pursue this year’s all-time highs.
The author’s thoughts and opinions are entirely his or her own and do not necessarily represent those of Cointelegraph.com. Every investing and trading choice has risk, so do your homework before making a decision.
Analysts and even traders have been shocked in recent weeks that Bitcoin shrugged off its downward tendency to bounce back to nearly $5000, and then, following a couple of corrective dips, reached $6000. Some are now calling this month’s price momentum as the strongest in a year for Bitcoin, and other analysts are wondering how much further the cryptocurrency can go.. Read more about will bitcoin go below $40,000 and let us know what you think.
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