The Bitcoin (CRYPTO: BTC) price is up 0.38% since this time yesterday, currently trading for US$40,122 (AU$53,932).
This will come as welcome news to crypto investors who watched the world's number one token by market cap tumble more than 7% amid yesterday's broad crypto selloff. That selloff saw every one of the top 100 tokens, aside from stablecoins, trading deep into the red.
Cryptos have been closely tracking risk assets, like high-growth tech shares, all of which have come under pressure with expectations of significant interest rate hikes ahead.
And that risk-off sentiment has seen the Bitcoin price lose 12% over the past week.
But that's all virtual water under the bridge.
To get a handle on where the world's original digital token may be heading next, we turn to the price charts.
Image source: Getty Images
Why crypto investors are watching this key Bitcoin price level
Looking at the charts, Bitcoin is hovering just above a 'bearish flag' in terms of support.
As Bloomberg reports, that support sits at US$37,582. Or about 6% below the current Bitcoin price.
If the world's top crypto falls below that, the next key price level to watch out for is US$36,700. And if it falls below that, look out below.
According to Bloomberg analysts, if the Bitcoin price slides lower than that level – some 8% less than where it's at today – it could tumble all the way down to US$26,000.
The last time it was at the level was back in December 2020.
