The Bitcoin price followed a reasonable upward trajectory in the previous week, which was successful in halting the downtrend, but towards the end of the week, the price was once again decreasing due to choppy market action.
The leading cryptocurrency recently reached a high of almost $43,000, its highest level in over ten days.
Given that the asset had recently plummeted to a monthly low of barely $39,000. As a result, bitcoin’s market capitalization has fallen to $750 billion, down from $800 billion earlier this week.
At its local peak of $40,000 the Bitcoin price was rejected and swiftly reversed course. In a handful of hours, the asset’s value plunged to $40,000.
Despite a strong control, Bitcoin’s price failed to hold the crucial levels of $41,500 and $40,000.
The bulls will attempt to defend the $38,600 support level. In the event that the bulls make a comeback, the resistance level is set at $40,800. Following the recent price drop, the RSI indicator for Bitcoin is currently trading at 40.
The asset has strong negative momentum, and if this level is broken, the asset will continue to decrease as it approaches the oversold region.
On the flip side..
Several tail risks have plagued bulls and triggered short-term profit-taking for a long time, tying and changing the price of Bitcoin.
This week, however, proved to be a game-changer, with the BTC price eking out its best week in April and setting the tone for the coming week as tail risks fade and tailwinds build up speed.
According to that scenario, Bitcoin is poised to break above $50,000.00 next week, reclaiming a few key levels to keep an eye on.