Bitcoin appears to be undergoing a minor upswing after experiencing a drastic drop from levels around $41,500. The drop from the crucial levels at $40,000 had a major impact on the entire crypto space, as the major altcoins also faced a serious drain. However, now that the BTC price has recovered, investors continue to remain sceptical about the impending trend, as it will result in the formation of a massive bearish candle ahead. With this do the bearish clouds continue to hover over the BTC price rally?
Achieving and sustaining above $40,000 until the end of the week is extremely crucial, as it may have a major impact on the impending trend. The price has risen above the threshold and is expected to rise above $41,000 in the next few days. However, the chances of the token sustaining above these levels are fewer, as turning the range low into resistance on the rebound could kickstart the breakdown process.
The above chart displays the price of Bitcoin trading below the weekly support at $41,460, with the lower support breaching below $40,000. This has happened for the first time since December 2023, which indicates a drop in the strength of the bulls. As previously stated, a weekly close above its resistance has pushed the price lower; however, a greater possibility of a rejection emerges at this time.
Therefore, the traders are required to be extremely cautious and look closely at the levels around $40,780. A clear rise above these levels may certify a short-term upswing above the bearish well; meanwhile, a drop below may hint towards an extended bearish action, which may drag the price towards new lows.