The coin seems to have found a local bottom around $39,100 earlier in the week
After a sharp sell-off at the start of the week, the bitcoin price notched one-month lows below the $40,000 psychological level as the cryptocurrency market suffered losses along with traditional stocks amid rising geopolitical and inflation concerns. During the subsequent bounce, the BTCUSD pair encountered resistance represented a slightly descending 100-DMA, today at $41,200, to give up most of the recovery gains.
On Friday, the coin is oscillating around the $40,000 psychological level while trying to regain the upside bias. However, upside seems to be limited at this stage, especially as the digital currency stays below the mentioned moving average that represents the immediate significant barrier for bulls.
On the other hand, the fact that the largest cryptocurrency by market capitalization refrained from a deeper retreat below the $40,000 mark may signal its readiness for a more robust bounce, as the coin seems to have found a local bottom around $39,100 earlier in the week.
On the weekly timeframes, however, the technical outlook has been deteriorating since the start of the month, with BTCUSD finishing the second bearish week in a row. Adding to a more downbeat tone, the prices have settled below the descending 20-week SMA, today at $42,900. Should the pair fail to hold the $40,000 mark in the coming days, the 100-DMA (currently at $35,400) will come back into the market focus for the first time in two years.
As for the fundamental picture, BTC could struggle along with traditional financial markets amid the ongoing geopolitical conflict surrounding Ukraine, rising global inflation, hawkish central banks and oil supply concerns. As long as there are so many uncertainties globally, equities will likely continue to stay pressured, capping potential gains in the cryptocurrency market.