Bitcoin is trading higher Thursday, bouncing after seeing a strong dip when reports first hit that Russia invaded Ukraine.
Bitcoin now sits below $40,000, a key level that has held as both support and resistance in the past. The cryptocurrency saw a day of above-average volume , showing that the crypto could be pushing higher once again.
Bitcoin turned around and tested the $40,000 level Thursday afternoon. If it can cross above, it once again may see support near the level. If the $40,000 level is broken, the next area of resistance may be found near the $60,000 level.
If unable to break above $40,000, the $30,000 level is where support may be found.
The cryptocurrency trades below both the 50-day moving average and the 200-day moving average. This shows the crypto is trading with bearish sentiment and each of these moving averages may hold as an area of resistance in the future.
The Relative Strength Index has been climbing back higher once again and sits at 42. This shows buyers have pushed into the market throughout the past few days although there still remain more sellers overall. To see a cross back above the $40,000 level, traders want to see the RSI be able to cross above the middle line once again.
Bitcoin has strong volume on a day where it dipped lower but was able to recover those losses. The crypto looks like it could be heading back toward the $40,000 level once again and will be a key level in the future.