Bitcoin Slips to $40,000: Quick Technical Outlook

Bitcoin Slips to $40,000, Bitcoin has continued to fall toward $40,000, demonstrating that the reversal was temporary. While there isn’t enough evidence to rule out another recovery, the current trend indicates that the digital asset will need to find its footing before recovering above $44K. This hard-fought resistance point, which the cryptocurrency had managed to overcome, is becoming increasingly elusive.

The decline is also visible in the digital asset’s market dominance. Bitcoin, which still has the lion’s share of the crypto market, faces stiff competition from other digital assets. As investors have shifted their focus to altcoins searching for higher returns, so has the market share.

Bitcoin’s Market Dominance is Weakening

Bitcoin had begun the year 2022 on a sour note. By that point, the digital asset had had a difficult month, and the fallout from the December crash was still being felt across the market. Not only had the digital asset’s price dropped, but its market dominance had as well, sliding below 40% for the first time in over six months.

It quickly recovered after that, but only marginally. It had bounced up to a high of 43.46% at the beginning of the week following the market recovery. This would be short-lived, as altcoins once again posed stiff competition. With a diverse range of DeFi and NFT offerings, networks such as Ethereum and Solana are leading the charge.

After that, Bitcoin’s dominance quickly waned. It was crashing from a high of 43.46% to its current level of 42.51%. Despite this decline, BTC still holds the majority of the market. The first cryptocurrency is still the market leader, and altcoins closely mirror its chart movements.

Bitcoin Slips to $40,000, Daily Technical Levels

Support Resistance

41754 42594
41417 43097
40914 43434
Pivot Point: 42257

Bitcoin’s price of $44,000 is a significant level for the asset. However, it does not indicate that the bull market has returned, but it does show considerable movement towards the $45K-$46K level, which would indicate another entry into the bull market. Despite trading above $44,000 for the majority of yesterday, the asset lost $2,000 in the early morning hours of Thursday, dropping to the low $42,000s.

This has resulted in a decline in the digital asset’s strength, as it is now only trading above the 20-day moving average. However, when the value falls below the 50-day moving average, it indicates a shift favoring the bears.

Bitcoin could fall above $40,000 if it closes below the 50-day simple moving average. While this is still a significant price point, there is insufficient support for BTC below this level. The next level of support is at $42,027, with major resistance at $44,767.