The rumor that Amazon would accept cryptocurrency payments sparked a wave of bullish enthusiasm across the crypto market earlier in the week, but now this sentiment has begun to wane as Bitcoin (BTC) bulls face stiff resistance at the $40,000 level.

Data from Cointelegraph Markets Pro and TradingView shows that bears have fended off multiple attempts to flip the $40,000 level to back up, and defense of this zone connected on July 29 every bit Bitcoin'southward stagnant price action and added to concerns that the cost could fall dorsum to concluding week's $35,000 to $xxx,000 range.

BTC/USDT i-twenty-four hours chart. Source: TradingView

Hither'south what analysts and investors are saying about the contempo developments in Bitcoin's toll.

The 21-week EMA marks the line between a bull and comport market

Bitcoin's rapid ascent from $31,000 to $40,925 lifted the toll near its 21-calendar week exponential moving average, a level that is widely considered every bit a balderdash market indicator, according to pseudonymous crypto Twitter annotator Rekt Upper-case letter.

As seen in the tweet above, the 21-week EMA is currently well-nigh the $40,000 price level, effectively becoming the "line in the sand" that separates bulls and bears.

One of the responses to the above tweet offers a give-and-take of circumspection for overly bullish traders, as similar moves in the past were followed past lower lows and an extension of bear market conditions.

BTC/USD 6-day nautical chart. Source: Twitter

As shown by the yellow circles in the chart higher up, previous instances of the price breaking to a higher place the 21-week EMA take resulted in a reversal that leads to a retest of lower lows in the post-obit weeks and months.

Bitcoin whales remain greedy while others are fearful

One grouping of market participants who have shown little evidence of indecision are Bitcoin whales, who accept embraced Warren Buffett's mantra to "exist fearful when others are greedy, and greedy when others are fearful," by buying up low-priced BTC as weaker hands tap out.

According to data from Santiment, an on-chain and behavioral analysis platform, whale wallets have accumulated 130,000 BTC in the by four weeks as the cost of Bitcoin traded below $35,000.

With such heavy accumulation existence seen in the lower $xxx,000 to $35,000 range, some analysts have suggested that whales may attempt to orchestrate another pullback in price so that they can proceed to accumulate.

Related : Bitcoin bulls control Fri's $1.7B monthly options expiry

Long-term cycles offering hope

When about-term confusion prevails, sometimes it'south best to take a pace back to see the bigger picture of where the market is and what possibilities the futurity holds.

Co-ordinate to Inmortal Upwards Only, a pseudonymous Twitter user, Bitcoin's four-year cycle is currently nearly 65% through its balderdash-market place phase, and the trader predicts a summit at $150,000, which will be followed past a correction to $32,000.

Bitcoin'southward toll in 4-twelvemonth cycles. Source: Twitter

For traders and holders who prefer to operate on a longer time scale, there remains enough to be optimistic about in the futurity, and experienced market participants know that the price moves seen over the past few months are function and parcel of Bitcoin'southward normal progression.

Further confirmation of the long-term perspective was offered by Ecoinometrics, which compared Bitcoin'southward current post-halving price action to performances in the previous two halvings.

As shown above, the current price of BTC is well below the average growth of previous cycles, indicating that the BTC has some "catching up to do" if it is to accomplish a similar trajectory and reach a new all-fourth dimension loftier above $100,000.

The views and opinions expressed here are solely those of the author and do non necessarily reverberate the views of Cointelegraph.com. Every investment and trading move involves risk, yous should bear your own enquiry when making a decision.