Bitcoin tests waters above $40,000 briefly before falling back


The tail wagged the dog in trading yesterday as a rout in crypto sparked a broader selloff across the market but today, there are hints of stabilisation in the former at least.

Bitcoin is up nearly 4% on the day and even managed to clip just above $40,000 earlier but is now trading back under figure level in European trading.

In essence, the level is a key psychological one to watch out for in defining what the latest selloff may mean in the bigger picture of things - especially with the 200-day moving average (blue line) also in play close to the $40,000 level.

Failure to break back above that could expose more technical vulnerabilities for Bitcoin and dip buyers will have a tougher time to try and work their magic.