Bitcoin price is ready to jump back to $40,000

Bitcoin (BTC) price was in a race to $41,000 in early trading on Tuesday but stumbled in late trading in the U.S. session as investors got scared of negative signals coming from Alphabet earnings. With that tumble and rollover, investors are sniping the opportunity to buy BTC at $38,073.32, resulting in elevated buy volume that is seeing BTC price getting lifted above the monthly S1 at $39,000.00. As it looks like this mood is set to continue throughout the day, expect to see an extension of gains, first to $39,780.66 and next $41,756.61 in case bulls can keep the momentum going.

BTC price sees momentum swinging in favour of bulls

Bitcoin price was a bit of an outlier on Tuesday as most cryptocurrencies were already on the back foot, but Bitcoin and other cryptocurrencies linked to Elon Musk were on the upside as a Twitter takeover provided a positive background in which those specific cryptocurrencies could rally. But it was not until the US trading session that reality bit back and triggered a massive sell-off, with BTC price dropping 5% as investors got worried about the earnings alerts with Alphabet weighing on sentiment. Panicking investors shed Nasdaq shares, a spillover effect that triggered Bitcoin price to tank further, with additional headwinds coming from possibly more worries today, with Facebook set to publish its earnings.

BTC price has thus hit the level at which bulls have been waiting to get engaged again. The Relative Strength Index (RSI) shows a knee jerk reaction that will hurt bears and make them jump the gun preemptively on booking profits. That will result in even more buy-side demand, triggering a rally towards $41,756.61, just shy of the $42,000 barrier and holding a 10% gain intraday. 

BTC/USD daily chart

On the geopolitical front, things are heating up again, with Russia closing its gas line to Poland and Germany at risk of falling short of its gas supply. This will result in further growing nervousness in the EU bloc and could trigger more retaliation against Russia with sanctions. That could provoke investors’ fears again, pushing them back to risk-off havens with the dollar further bid and BTC price dropping through $38,073 towards $36,709, the next line in the sand.