The bitcoin roller coaster: What’s the next stop after falling to $38,460?
Bitcoin, the most well-known and most traded cryptocurrency, has recently undergone a significant decline that has reduced its value to $38,460, a significant slowdown from its recent two-year high of $49,051. Although the price is struggling to recover, the short-term oscillators are showing a strong downward bias, which raises technical concerns.
Currently, Bitcoin is facing an internal swing low at $41,285, which may hinder faster growth. However, if the price can push above this level, the way could be open for a test of the January resistance at $43,400, followed by the December peak at $44,725. A break of this level could draw attention to the $45,912 level.
On the opposite side of the spectrum, if bull pressure weakens, Bitcoin could return to its near two-month low at $38,460. In the event of further declines, it could then move towards the October hurdle at $33,400, where it currently lacks significant support. An even lower level at $31,827 could then provide further protection against a possible decline.
Analysts stress that the current state of the market points to some uncertainty and that a sustained recovery would require a clear close above the $40,000 level. Thus, despite the temporary halt in the downward trend, the question of a sustained recovery is premature, and investors are watching closely to see how the situation develops in the days and weeks ahead.
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