Crypto Capo has updated his analysis on Bitcoin (BTC), highlighting a critical support level between $40,000 and $41,000. Despite signs of weakness, BTC’s ability to maintain above $40,000, especially during higher timeframe closes, suggests potential for a rally towards $44,500 or higher.
The analysis points to a volume decrease indicating possible weakness, yet also reveals strong demand below current levels. Moreover, the reset of funding rates adds an interesting layer to market dynamics.
Crypto Capo posits a scenario where a final dip to the $40,000 level could be strategically used to accumulate more liquidity before initiating a bounce.
Key factors to watch for a bearish confirmation include higher timeframe candle closes or price action signals below the $40,000 threshold. However, the analyst leans towards an optimistic scenario, anticipating a near-term bounce that could provide altcoins with more room to sustain their upward momentum.
Crypto Capo’s analysis serves as a valuable guide for investors navigating the current BTC climate, emphasizing the importance of understanding the $40,000-$41,000 support range and monitoring higher timeframe closes and potential bearish signals.