Bitcoin (BTC) failed to sustain moves above $40,000 resistance on Thursday as the broader uptrend weakens. The cryptocurrency was trading around $36,000 at the time of writing and upside appears limited into the weekend.
A bearish trend reversal is on watch after months of slowing momentum, consolidation, and a downside break below $50,000 and $40,000. Bitcoin is down about 37% month-to-date and has experienced a series of sharp drawdowns similar to 2017 which preceded a bear market.
Despite signs of a broader trend reversal, there are still short-term opportunities for active traders. “BTC can be very volatile, especially compared to assets in traditional markets,” wrote Justin Chuh, senior trader at Wave Financial in an email to CoinDesk.
“No one is borrowing to short spot BTC, we sill have an upward sloping forward curve, and downside protection remains relatively light,” said Chuh, who added that support will need to hold above $30,000, or otherwise bitcoin would be down on the year.