Following its slump from the mid-$42K area, BTC has lost its bearish momentum at the $39K support as possible buyers prevent a fall below that line. Unfortunately, yesterday’s slump also prevented the benchmark cryptocurrency from forming an hourly golden cross, which should have created a new base above the $40K level and helped BTC on its journey back to $50K.

That said, the market remained in a sideways pattern around $39K ahead of the US inflation data report today, which should inject some momentum into the market. I expect to see a decent bullish rebound to the upper-$40K zone before the end of the week, considering the ongoing geopolitical crisis does not escalate.

Meanwhile, my resistance levels are at $40,000, $41,000, and $42,000, and my key support levels are at $39,000, $38,500, and $38,000.

Total Market Capitalization: $1.74 trillion

Bitcoin Market Capitalization: $742 billion

Bitcoin Dominance: 42.5%

Market Rank: #1