Bears push Bitcoin price below $40,000 level

Bitcoin selloff was arrested on Wednesday as bulls fought to regain market control. Bitcoin price edged lower on Thursday, trading with low volatility without a clear trend forming.

Bitcoin struggled to hold on to the key $40,000 level on Thursday as bears pushed the cryptocurrency price lower. If BTC price declines, further support can be found at $39,000, while resistance may be near $42,200. 

Ethereum price remained steady on Thursday, oscillating around the $2,200 level. If Ethereum's price declines, it may encounter support near $2,160, while if it increases, resistance may be encountered near $2,500.

Crypto markets plummeted earlier this week, pushed down by increased risk-aversion sentiment. Crypto markets are under pressure by rising geopolitical tensions. Concerns that the Geopolitical crisis in the Gaza area may spread to neighboring countries drive risk sentiment down putting pressure on risk assets. The US and the UK have launched a coordinated action against Houthi rebels in Yemen. The coalition delivered new airstrikes against Houthi rebels in Yemen overnight on Monday, souring risk sentiment.

The approval of Bitcoin spot exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC) has caused cryptocurrency prices to surge over the past few weeks. The SEC finally approved 11 applications but the enthusiasm over the approvals did not last long. Crypto markets are deflating as the boost they received from the hype created over the approval of Bitcoin spot ETFs is fading.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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