The purple circle represents a key support level , both locally and on the macro dating back to Q4 2020. That is a support extending from October 2020 to present. Its also the next step down in the purple downtrend that is the prevailing trend currently.

Ideally if the macro market conditions stabilize, we retest that support and look for a bounce. Closing under $37k could indicate more downside in the near future. $34k-$35k is the last major support level that might guard against a major downside movement if it comes to it.

I’d say overhead that $40k is the immediate resistance level for bulls, but the past few months proved that $40k as a support or resistance is a meme at best, as price is regularly cutting through it.