Bitcoin continues to fluctuate between the $40,000 and $40,000 prices. There have been five breaks over $40K since January. Although it is possible to breach an important resistance level it can be quite different to do so with strong support. It has been difficult to break above this level for the digital asset. This raises the question about whether or not the cryptocurrency can actually hold it.
Bitcoin ends the Idle Streak
Since it failed to surpass $40K in its last attempt, Bitcoin has been in an idle state. It failed again to show support after breaking through the desired resistance level. The $38K mark was the lowest it had fallen to. It has been a strong point at this level for years, and it was expected that it would be the stopping point.
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The consolidation range of the cryptocurrency has become tighter over the last week with digital asset trading at the $39,000 mark. It maintained low momentum during the week, suggesting that even though there had been a slight recovery trend it wouldn’t be substantial.
BTC gains above $40K | Source: BTCUSD on TradingView.com
However, Bitcoin continues to drag down the markets. The correlation with other coins such as Ethereum remains high. Trading volume has increased due to uncertainty about the future of this digital asset. The cryptocurrency gained momentum after the launch of the trading market for mid-week.
A Fifth Time is the Charm
Bitcoin has once again surpassed $40,000. The biggest obstacle to bitcoin’s growth is still the $40,000-$44,000 mark. It is obvious that the price range of $40,000 to $44,000 is the culprit. These junctions are where bears will mount resistance because breaking away towards $46,000 could put bitcoin on another bull market.
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In anticipation of the Fed decision being made, bitcoin rallied in the meantime. On the other side, bitcoin’s correlation to gold has declined over the past week. This has reached an 8-year high.
BTC’s price is still shakily holding on to $40,000 as of the time of this writing. If the past is anything to go by, the market might see BTC’s price fall back below $40,000 before the weekend.
Featured Image from Forbes. Chart by TradingView.com