The thing is that the recent downtrend has set it on a bearish path and with the market halfway to the next halving, it could very well be that the market is headed into another stretched-out bear.
It is a helpful tool that aggregates data across a number of metrics and then delivers on a numbered scale.
If investor sentiment continues to be negative and no new money comes into the market, then bitcoin may very well retest the $35,000 before the weekend is over.
For a digital asset like bitcoin, it is important to stay above this level if there is to be a recovery in the short term.
Not a historically strong support level for the digital asset but if the bears were to let up a bit with their selling, then it could definitely hold.
Furthermore, the market should expect significant resistance if bitcoin does try to break above $40,000 again.
NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins.