Is the fall of Bitcoin over? By returning above $40,000, the cryptocurrency already suggests a possible rebound. The point in this BTC analysis from Wednesday January 24, 2024.

It is Wednesday January 24, 2024 and the price of Bitcoin (BTC) is moving around $40,200.

Despite yesterday’s day which was still very bearish, Bitcoin is trying to rebound and regain support at $40,000.

Will cryptocurrency manage to return to this major level in the long term? Let’s first take stock of its progress.

Already the rebound for BTC?

After its fall in recent days, Bitcoin showed a good reaction with an increase of +3.19% over 24 hours.

Pairs with Bitcoin	24 hours	7 days	1 month
Bitcoin/USDT	+3.19%	-6.06%	-6.77%
ETH/Bitcoin	-2.14%	-11.63%	+7.15%

The dominance of BTC against altcoins continues its slight rise to 51.83% while ETH/BTC lost 11.63% over the week.

Can Bitcoin invalidate the ongoing decline?

While it had broken its very important support around $40,000 as well as the upward widening pattern in yellow at the start of the week, BTC is attempting to rebound.

As we can see on this chart, the break of this pattern is a bearish signal in the short term since the price is now below the $40,800 zone, which acted as support and which should now reject the price in case of retest.

Bitcoin price chart h4

To return bullish, the cryptocurrency would therefore have to manage to regain the yellow pattern at the close, as well as return above the cloud at $42,000.

At that point, the price will then have the liquidity to return to test $45,000, the next major resistance on the path.

In the meantime, the setup remains bearish with a target at around $34,870. However, the first important step will be a return to the weekly Kijun at $37,685.

This curve of the Ichimoku indicator is indeed an area of ​​interest that could allow the price to rebound. Breaking the latter downward and closing would, however, give a new bearish signal.