Bitcoin price has been trading below the $40,000 level since the start of the week. It hit its highest level in two months at $42,500 on August 1, 2021.
Bitcoin price has been in the red since the start of the week. However, it rebounded late Wednesday, albeit it was not up the $40k psychological level yet. BTC hit an intraday low of $37,508 earlier in the day.
The drop in the crypto leader’s price has weighed on most cryptocurrencies due to their correlation to the coin. Investors in cryptocurrencies are closely eyeing BTC’s performance for the next few days.
According to most analysts, the slip in Bitcoin price could be linked to the US infrastructure bill. The senate’s infrastructure bill seeks to crack down on cryptocurrency tax reporting. According to the senate, the increase in the crypto tax will help boost revenue for its plans.
The Bitcoin price has been range-bound for three consecutive months. It has been trading within the $42,500 and $30,000 levels. At the time of writing, BTC rose 3.17% at $39,418. It hit an intraday high of $39,599.
The bull market needs to gain momentum on the mentioned intraday high to push the price above the congestion area. A move past the $42,500 level will have the next price target level at $43,569.
However, a breakout below the key support level at $37,455, will have the bears targeting the next support level at $31,919.
On the daily chart, the Bitcoin price is trading below the 25 and 50-day exponential moving averages (EMAs). Its Relative Strength Index (RSI) was strong at 59.97.
Despite the bullish signals, the BTC’s investors are worried about its price due to the senate’s decision. The increase in crypto tax reporting is scheduled to kick off early next year. The clock is ticking for crypto investors.