Bitcoin price is on a pullback after the bulls failed to gather enough momentum to push past the crucial level of $40,000. On Wednesday, the leading cryptocurrency hit the psychological level before dropping to find support along $38,000. Notably, investors and analysts alike perceive the level as the make-or-break point for the crypto.
After dropping from its all-time high in mid-April, $40,000 has largely been the pivot. When Bitcoin price dropped below $30,000 in mid-May, the resultant buying pressure pushed it back to round the $40,000 level. Interestingly, the situation was recreated in July.
On the one hand, regulatory issues have heightened crypto’s volatility. However, optimism on the efficacy of Bitcoin as a store of value and means of payment has constantly boosted it back to $40,000. In order to fire up a sustainable uptrend, the bulls will need to sustain the prices well above this level. Its steady rejection is likely to yield enough selling pressure for the bears to retest July’s lows of below $30,000.
BTCUSD is down by 2.06% at 38,923.26. Earlier in the day, it hit a low of 37,302.26 after dropping from the psychological level of 40,000 on Wednesday. On a four-hour chart, it is trading along the 50-day EMA and above the long-term 200-day EMA.
In the near term, 40,000 will likely remain its crucial resistance level. Above that level, the next levels to watch will be 41,000 and Sunday’s high of 42,647.41. On the flip side, a decline below 37,500 will place the support levels along the 200-day EMA at 36,394.12.