Bitcoin at a Crucial Threshold: Will the Altcoins Gain Bullish Momentum?

The post Bitcoin at a Crucial Threshold: Will the Altcoins Gain Bullish Momentum? appeared first on Coinpedia Fintech News

The bearish start for the week has overhauled the bullish momentum as the Bitcoin price made a mark below the crucial threshold at $40,000. With this, the road towards the lower support has been cleared. Therefore, now the question remains whether the expectation of the 2024 bull run has waned or if it is another opportunity for traders to accumulate at discounted prices.

In the short term, the price displays a huge possibility of a bullish reversal, as the RSI has triggered a healthy rebound from the lower support. However, the long-term forecast displays diverse price actions as the bears continue to hold a major dominance. With this, the rise in bearish influence appears to be elevated, as the descending trend is expected to prevail if the bulls fail to reclaim the levels above $42,000 this week. 

As observed in the weekly chart, the BTC bulls seem to have lost grip over the rally as bears have been dominating for the past three weeks. The BTC price touched the interim lows at $39,431.58 and is currently struggling to sustain above $40,000 following a minor rebound. The weekly RSI has been constantly hitting average levels at 50 and, at times, has dropped below. Therefore, maintaining a descending trend, the BTC price is expected to reach interim support at $38,100.

If the bulls fail to display their strength, then extended bearish pressure could lead the token towards the crucial support zone between $36,390 and $34,417.89. In either of the cases, the bitcoin price is primed to drop by another 5% to 8% throughout the week and close the trade on a bearish note. However, a rebound at the interim support level may delay the bearish action but may not terminate it until fresh buying pressure makes its way to the markets.