$40,000 is a crucial level to watch

Since the plunge to $38,505 on Monday, Bitcoin has been trending mainly sideways around the critical level of $40,000. Meanwhile, the number of Bitcoin addresses with balances exceeding 1,000 BTC ticked slightly higher; the same applies to the addresses with balances exceeding 100 BTC. On the daily chart, the RSI began to flatten around 35 points, Stochastic reversed to the upside, and volume declined. All these signs are slightly positive and increase the chances of a rebound. On the other hand, there are also some negative developments, like the bearish crossover between moving averages, a continuation of the decline in the MACD, and growth in the ADX (suggesting the bearish trend has been gaining momentum for the past eleven trading sessions). As the short-term picture is not clear, it seems reasonable to keep targeting $37,000 for as long as Bitcoin stays below $40,000.

Illustration 1.01
The picture above shows the daily chart of BTCUSD and two simple moving averages. The yellow arrow hints at the bearish crossover between these two SMAs.

Technical analysis gauge
Daily time frame = Bearish
Weekly time frame = Bearish
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of multiple indicators.

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DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor or any other entity. Your own due diligence is highly advised before entering a trade.