Bitcoin The price has been very active for a while, re-triggering the activity in the cryptocurrency market. While BTC managed to surpass $36,700 with its recent move, analysts believe that the next critical level is $40,200. In the same analysis, it was also underlined that a movement towards this level is quite possible.
The first checkpoint of Bitcoin price’s current rise was at $34,300, and it has safely crossed that level, supporting market sentiment. But the journey to $40,200 is not just a rumor. This level, obtained by Fibonacci retracement, a tool used by traders to determine potential return levels, is closely followed. BTC’s move towards $40,200 is also in line with investors’ psychological tendency to target round numbers that often act as resistance or support levels due to common trading strategies.
The chart is interpreted with a 275-day bottom formation, indicating strong support from which Bitcoin started its rise. This formation, which is generally seen as a bullish formation, indicates a reversal from previous downtrends and provides a basis for the continuation of the potential upward movement. Moreover, the 200-day moving average (MA), an important indicator followed by institutional investors, supports this positive outlook as it maintains its strength.
After $40,200, $44,300 has been determined as a very important resistance level. This level is quite consistent with the price movements BTC has experienced before. This level is considered one of the main levels where bulls and bears show their true strength.
As a result, while Bitcoin’s “next stop” at $40,200 appears within reach, investors should be cautious. The path to higher valuations is fraught with potential pullbacks and volatility inherent in the cryptocurrency market. A move above $40,200 could pave the way for more gains towards $44,300, but this journey is dependent on sustaining the current momentum and favorable market conditions.