Bitcoin’s price continues to flutter in and out of the $40,000 range. Keeping track of these breaks over $40K, there have now been five since the beginning of the year. It’s one thing to break through a significant resistance level; it’s another to hold above it and form strong support. The latter has proven elusive for the digital asset, raising the question of whether it will be able to hold above it this time around.
ONLINE INCOME OPPORTUNITIES
Bitcoin Breaks Symmetrical Triangle
Bitcoin has been dormant since failing to hold above $40,000. After breaking above the coveted resistance level, it failed to demonstrate that it could form support. It had then dropped to the $38K mark. As expected, this point has always formed strong support at this level, and it has been the stopping point for the decline.
The cryptocurrency’s consolidation range has become tighter for the past week, with the digital asset trading around the $39,000 mark. It maintained low momentum throughout, indicating that it would be insignificant even if there were a recovery trend.
However, BITCOIN has continued to drag the market along with it. Correlation with coins such as Ethereum has remained high. Uncertainty about where the digital asset will go from here has resulted in increased trading volume. However, with the start of the midweek trading market, the cryptocurrency has gained some traction.
BTC/USD Technical Outlook
Bitcoin has broken out above $40,000 once more. This point, which remains a difficult level to overcome, remains the most visible impediment for the digital asset. The obvious offender is the $40,000 to $44,000 range. Bears tend to build resistance at these crossroads because a break above $46,000 would send Bitcoin into another bull market.
As the market awaits the Fed decision, bitcoin has been rallying upwards in anticipation of the outcome. On the other hand, Bitcoin’s correlation to gold has decreased over the last week. It has now fallen to an eight-year low.
As of this writing, the price of BTC is still clinging to $40,000 on shaky ground. If history repeats itself, the market may see the digital asset fall back below $40,000 by the start of the weekend.