A significant resurgence for Bitcoin is expected to be met with “probable rejection” if $40,000 is reintroduced, according to one analyst.
On Feb 23, as European markets opened with small gains, Bitcoin (BTC) began to exhibit much-welcomed upside volatility.
$39,600 is expected to elicit “strong pushback.”
BTC/USD gained significantly on Wednesday, reaching $39,000 before stabilizing, according to data from TradingView.
The pair had made a decent recovery overnight, with gains totaling 6.8% over Tuesday’s lows.
“It appears I’m not receiving that modest pullback, but instead am continuing upward.”
It doesn’t make a significant difference to the structure.
Crypto Ed, a well-known trader, reacted, “$40,000 is a crucial level.”
Crypto Ed had previously cautioned that any push beyond $40,000 could result in a relief bounce followed by a deeper fall than this week’s.
Meanwhile, another trader and analyst Matthew Hyland identified $36,300 and $33,000 as the support levels in play for the short-term scenario.
As it had been previously in February, $39,600 was the upside barrier zone he needed to break beyond.
“If we get there, expect severe resistance and likely rejection around the 39.5-40k area,” tweeted Twitter user Cheds.
Following Tuesday’s lows, the analytics tool Material Indicators noticed a shift in customer behavior after days of hesitation.
It declared on Twitter that “market buyers finally got off their hands and started clicking the green button,” along with a chart showing increased order volumes of both large and small transactions.
With its current run upward, BTC/USD appeared to be approaching a band of resistance, according to order book data from major exchange Binance on Wednesday.
With talk of a ‘altseason,’ altcoins are bouncing back
Altcoins had a fantastic day on Wednesday, with key tokens outperforming Bitcoin’s robust 24-hour performance.
At the time of writing, Ether (ETH) was up 6.1 percent to $2,700, similar to many of the top 10 cryptocurrencies by market valuation.
Terra (LUNA) topped the list with a 14 percent gain over the same time period, followed by Avalanche (AVAX) with 11.8 percent and Cardano (ADA) with 9.7 percent.
Meanwhile, talk of an imminent “altseason” remained prevalent on social media.