. Bitcoin's Price Surge: Will it Hit $40,000 Again?

Bitcoin’s Price Surge: Will it Hit $40,000 Again?

25 Jan 2024

Bitcoin’s price is aiming for a rebound above $40,000, leaving traders uncertain about the BTC’s next direction.


  • On Thursday, Bitcoin recovered, surpassing $40,000 and indicating potential gains after a recent correction.
  • Long-term Bitcoin holders moved over $430 million to exchanges during a dip below $39,000.
  • Sentiment experts suggest that the current volatility in cryptocurrencies presents an opportune moment to adopt a contrarian position in Bitcoin.

The largest cryptocurrency, Bitcoin, has shown a deceleration in its decline since the inception of U.S. exchange-traded funds for the digital asset on January 11. It encounters a crucial test as a potential bottoming signal on its charts awaits confirmation.

Bitcoin experienced a setback following its peak at a two-year high of $48,989 on January 11. The asset declined to its 2024 low of $38,555 on Tuesday but has since started a recovery, reaching the psychologically significant level of $40,000.

The Securities and Exchange Commission’s (SEC) approval of Bitcoin Spot ETFs introduced volatility to crypto prices, causing a division among traders in their sentiment toward BTC.

Sentiment experts suggest adopting a contrarian stance to capitalize on the evolving trend in Bitcoin prices.

Bitcoin has experienced a drop exceeding 20% from its intraday peak of $49,021 coinciding with the initiation of ETFs. The initial enthusiasm for these products has now shifted to concerns regarding the actual level of demand for them.


Technical Overview:

Bitcoin is currently trading within a down channel.

Bitcoin is positioned below the 20&50 Moving Average (SMA).

The Relative Strength Index (RSI) is in the Selling zone, while the Stochastic oscillator suggests a Positive trend.

Immediate Resistance level: 40452.33

Immediate support level: 38774.73


Following a sharp rise, Bitcoin encountered resistance and subsequently experienced a sudden and steep decline. Bitcoin is testing a crucial support zone, indicating a potential opportunity for selling on any subsequent upward movement.

TRADE SUGGESTION- Limit Sell– 41009.11, TAKE PROFIT AT- 38855.54, SL AT- 42793.49.