The king coin fails to cross above the $9-day moving average; it may likely see a sharp drop towards the lower boundary of the channel.
A break above the previous level would have set Bitcoin up to retest the $42,000 level, but the technical indicator Relative Strength Index shows that BTC is heading to the south as the signal line crosses below the 40-level.
However, the Bitcoin price touches the daily low of $39,573 but may cross below the channel to confirm the bearish movement.
The 4-hour chart shows that the Bitcoin bears are stepping back into the market, pushing the BTC price below its previous support level that existed around $40,000.
The upward movement may likely push the price nearest resistance at $42,000 and above while the immediate support lies at $38,000 and below.