Bitcoin (BTC) Gaining Downward Momentum Drops Back Below $40,000. Will It Rebound and Rise Again? Or Will the Drop Continue?

Bitcoin (BTC) gaining downward momentum is back below $40,000 again. It started to rise earlier in the week and managed to move up to the $43,000 resistance, but failed to break the resistance so it fell back. It lost just 1% on a weekly basis. But over $40,000, it cannot move higher due to increased selling pressures, so it falls back. So how long will this take? And will Bitcoin continue to drop or will it be able to move higher?

Bitcoin (BTC) is currently trading at $39771. Bitcoin lost its support at $ 40,000 yesterday and fell to $ 39177. Trading volumes have decreased significantly as buyers appear to be short supply in the market. This caused the markets to shrink. This week Bitcoin tried to recover around $43,000 but failed, returning below $40,000 as selling pressures increased. With the decline in buying, the bears managed to push the Bitcoin price below the $40,000 support zone. And there was a close below the 100 hourly simple moving average. Bitcoin is currently trying to recover losses.

Last week, Bitcoin succeeded in stopping the downtrend and followed an upward trajectory, but towards the end of the week, the price is falling again as a result of the choppy price action. The recent downside move seems to have benefited from the broader market sentiment of the bears, further adding to the selling pressure. Bitcoin will struggle to retrace and break above the $40,000 resistance zone, but if it fails, it could continue to decline. An immediate support on the downside is near the $39,200 level. The next major support is seen near the $38,600 level. If it breaks below the $38,600 support zone, there could be a break and further selling pressure could increase. In this case, the price could drop as low as $37,000.

If Bitcoin continues to decline, the Bulls will try to defend the support level at $38,600. On the other hand, if the bulls make a comeback, Bitcoin could rise above the $40,000 pivot level and then quickly start to recover. There is currently a downtrend line forming with resistance near $40,000. Although there is a resistance at $40,000, the main major resistance is seen at $40,800. If it can break this resistance, it could rise quickly to retest $43,000.

But I would like to point out that Bitcoin has a strong negative momentum and the asset is heading towards the oversold region, if this continues, further declines are inevitable. So if the bulls don't take the initiative back, the bears will push the price much lower. In short, a large buying volume can trigger a recovery and rise, otherwise it may continue to fall until that happens.

Looking at the current data, investors think that the price of Bitcoin, which falls below $ 40,000, is cheap, so the selling pressure around $ 40,000 is easing and buyers are increasing. This shows that Bitcoin can recover and rise again in the coming days. The bears will try to push the price further down, but if the bulls can take the initiative back, there could be a quick rebound or even a quick rally in the coming sessions.

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