Bitcoin (BTC) has been impressive after breaking through resistance at $39,000. Moreover, Bitcoin bulls have continued the recent rallies after recapturing the psychological price level of $40,000.
However, on the daily chart, the bulls are on the verge of breaking the 50-day moving average. A break above the moving average will signal the resumption of upward momentum.
At press time, the BTC price is trading at $42,736. Otherwise, the bears are likely to offer strong resistance in the $42,000-$43,000 area. The 50-day moving average line is also a resistance for the BTC price. BTC/USD is likely to rally above the $50,000 psychological price level once the current resistance zones are overcome. However, if the BTC price fails to reach its recent high, the cryptocurrency could fall back to the support at $39,000.
Bitcoin indicator reading
BTC price bar is above the 21-day moving average line but below the 50-day moving average line, indicating price fluctuations between the moving averages. Meanwhile, the Relative Strength Index is at 58, indicating that the cryptocurrency price is in an uptrend. The BTC price has broken through the resistance line of the descending channel and closed above it, indicating a reversal of the downtrend. Bitcoin is in a bullish momentum and above the 20% area of the daily stochastic.
Technical indicators:
Major Resistance Levels – $65,000 and $70,000
Major Support Levels – $60,000 and $55,000
What is the next direction for BTC?
Bitcoin has regained its bullish momentum after rising above support at $37,000 and breaking through upper resistance at $39,000. The bullish momentum has extended to the next resistance at $42,736. A breakout and close above the resistance zones will signal the resumption of the uptrend. Failure will lead to a sideways move below the resistance zone.
Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.
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