Will Bitcoin hit the $40k psychological level soon?
Bitcoin has overcome its recent bearish trend and could rally past the $40k level.
The cryptocurrency market has been underperforming over the past few days. Last week, Bitcoin dropped below the $40k level last week as the broader cryptocurrency lost more than $100 billion within a few days.
Since then, Bitcoin has been trading below the $40k level but could look to surge higher over the coming hours.
At press time, Bitcoin is trading at $39,227 per coin, up by less than 1% over the past 24 hours. The technical indicators are looking positive, and Bitcoin could rally higher soon.
There is no catalyst behind the ongoing market recovery. However, if it is sustained, Bitcoin and the broader cryptocurrency market could record sustainable gains before the end of the day.
Key levels to watch
The BTC/USD 4-hour chart is looking bullish at the moment as Bitcoin has been performing well so far today. The technical indicators show that Bitcoin has been performing averagely over the past week.
The MACD line just crossed the neutral zone into the positive territory as Bitcoin recovers from its recent slump. The 14-day relative strength index of 58 shows that Bitcoin could soon enter the overbought region if the positive momentum is maintained.
If the bulls gain greater control of the market, Bitcoin could top the $40k psychological level soon and break past the first major resistance level at $41,293 before the end of the day.
Unless there is an extended rally, the second major resistance level at $44,929 should limit further upward movement in the short term.
However, if the bearish trend resumes, Bitcoin risks dropping below the first major support level at $37,574 over the coming hours. However, Bitcoin should comfortably stay above the $35k resistance level.