Bitcoin has attracted the attention of traders, analysts, and investors with its struggle with the $40,000 level this year. The dominant crypto comes back to test the mark as resistance or support each time. That’s regardless of the magnitude of its rally.
Back to The Level Again?
Bitcoin hovers within an ascending channel on large timeframes, and analysts expect it to cement $40,000 as a massive support floor. Nevertheless, price movements within the previous ten days negated such possibilities.
Experts expected investors to turn bearish or maintain the buying spree following yesterday’s 5.8% declines. Surprisingly, neither of that would happen.
The intent to HODL that started gaining momentum as February ended appears to gather strength in March and April. This period had 163,490 Bitcoins worth more than $6.3 billion purchased from crypto exchanges.
That came as BTC launched upside moves within the phase, touching the $46K highs by March-end. Naturally, market players awaited a bullish run for the dominant crypto, targeting the psychological level at $60,000.
A Contractual Thing
The Options Open Interest also reflected the narrative, with the highest calls placed at $60,000 and the 2nd-highest at $50,000. Meanwhile, individuals that understood the marketplaces and the practical move placed their targets at $40,000. Here, several contracts were around $45,000, $44,000 and $42,000.
With nearly 54K contracts expiring within two days (now to April 29), contracts at $40,000 will enjoy some profits, provided BTC climbs up. Meanwhile, price indicators displayed heavy bullishness in this publication. For instance, the Parabolic SAR indicated active downtrends. It has gained momentum according to the ADI (Average Directional Index).
Furthermore, the probability of BTC closing at $38,000 and $39,000 appeared higher (72% and 50%) than the $40,000 (26%). While publishing this content, Bitcoin traded at $38,979. The crypto has a chance to tweak its trend if it could record a 2.34% increase within the coming 24 hours.
For now, the broad market is attempts recoveries following the recent slump. The market capitalization of all cryptos stood at $1.80 trillion after a brief 0.81% uptick within the past day.
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