- Bitcoin remains in a downtrend since November 2021
- Bear still in control as Bitcoin fails to remain above $41,600
The price of Bitcoin (BTC) has fallen back below the $40,000 mark today despite some positive news reports coming out earlier in the week.
On Tuesday, the global markets rallied up as Ukrainian President Volodymyr Zelensky hinted at a possible compromise with Russia regarding the recent conflict.
And on Wednesday, SEC filings revealed that Goldman Sachs plans to offer its larger clients access to Ethereum products, further legitimizing the cryptocurrency industry.
However, the rally was short-lived as just 48 hours later, BTC and the wider crypto markets had erased nearly all of their earlier gains.
This price action falls in line with the overall sentiment of the market which has been bearish since the end of November last year.
With Bitcoin now trading below a key resistance level, we decided to take a look at the charts to see where it may be headed next.
A Look At The Bitcoin Chart
The daily chart shows that BTC was rejected from the resistance at $41,600 which has been a key level since the start of 2021.
Bulls have been unable to keep the price above this zone, indicating that the bears are still in control.
Since BTC has failed to consolidate above this range for a few weeks now, this may be a reason to believe that the price is headed lower in the short term.
The most significant support level for Bitcoin below $39,000 is at $30,000 which marked the bottom of last year’s May crash.
There is a lot of interest for BTC at this level so it is worth keeping an eye on.
