Bitcoin BTC/USD is trading higher Thursday, bouncing after seeing a strong dip when reports first hit that Russia invaded Ukraine.

Bitcoin now sits below $40,000, a key level that has held as both support and resistance in the past. The cryptocurrency saw a day of above-average volume, showing that the crypto could be pushing higher once again.

Bitcoin was up 3.18% at $38,454.27 at the time of publication.

Related: Why Is Bitcoin Taking A Much Harsher Beating From Russia's Ukraine Invasion Than Stocks?

Bitcoin Daily Chart Analysis

• Bitcoin turned around and tested the $40,000 level Thursday afternoon. If it can cross above, it once again may see support near the level. If the $40,000 level is broken, the next area of resistance may be found near the $60,000 level.
• If unable to break above $40,000, the $30,000 level is where support may be found.
• The cryptocurrency trades below both the 50-day moving average (green) and the 200-day moving average (blue). This shows the crypto is trading with bearish sentiment and each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) has been climbing back higher once again and sits at 42. This shows buyers have pushed into the market throughout the past few days although there still remain more sellers overall. To see a cross back above the $40,000 level, traders want to see the RSI be able to cross above the middle line once again.

What’s Next For Bitcoin?

Bitcoin has strong volume on a day where it dipped lower but was able to recover those losses. The crypto looks like it could be heading back toward the $40,000 level once again and will be a key level in the future.

Bullish traders are looking for higher lows and for the $40,000 level to hold as an area of support. Bearish traders want the crypto to hold the $40,000 level as an area of resistance and begin to dip lower once again.