BTC Price Analysis: Bitcoin Nears Breakout of 46 Day Channel, Will BTC Price Break $42,000 Resistance?

• BTC price is stuck in a range for nearly 6 weeks
• RSI is currently breaking 177 day trend line
• 50MA has been resistance for nearly 2 months

Bitcoin and the broader cryptocurrency market have been stuck within a range for nearly a month and a half. This has lead many investors and traders to boring times compared to the previous 6 months of the market movement. This is completely normal and expected after such a bullish trend that was seen since March of 2020. BTC price needs to break and hold its important zone of 38k-41k to put this boring, range trading to an end.

As seen in light green, BTC has been trading within a descending channel the last 45 days. Bulls and bears have equally defended both sides of the channel leading to a large consolidation that has taken place. BTC is nearing the top of this channel yet again which if broken, will lead to a large move to $40,000 or above. $36,500 is the important zone for traders to be watching as if price can break & hold this mark, a push to 40k is expected.

BTC Price Analysis: BTC/USDT 1 Day Chart

The 50 Day MA has acted as a resistance line since early May (2 months). This MA is coupled with the top trend of the descending channel which proves this area to be a high resistance zone that will set price free if bulls manage the breakout. Price will then likely battle the major resistance zone of $38,200-$40,850. If Bulls fail to break this mark, support can be found at $36,500, $35,100, $33,500 & $31,000. Anything below these marks will turn a bearish outcome under $30,000.

While looking at the RSI, we can see a large trend line has formed since the beginning of 2021. Just today, the strength has formed a line above this 177 day trend which is great sign that a trend change may be happening. The MACD also sits in a coiled fashion below the 0 value, awaiting a bullish breakout. The MACD turned green the last week along with a bullish cross of the MA’s. A break above the 0 value will likely send BTC price back to near 40k. 

BTC price intraday levels 

• Spot rate: $35,300
• Trend: Neutral
• Volatility: Medium
• Support: $35,000
• Resistance: $36,600

About Author

Domenic Fiore has a love for the financial markets. He decided to skip the college route to pursue entrepreneurship. He saw the vision to become an entrepreneur and wanted to achieve success from a young age. Domenic owned & operated a car detailing business since the age of 16, along with being a part of two CBD businesses through 2018 & 2019. He started his investment and trading career early trading in 2017 when he bought a newly released cryptocurrency alt-coin and saw 10x return in a few months. He then realized there was much potential and dove head first into learning everything he could. He became very passionate about technical analysis and knew it was his route to financial freedom. Over the last 4 years, Domenic has shared his analysis with many groups and received amazing feedback. Shortly after he wanted to help assist in the pursuit of spreading and helping others achieve success in the trading industry.

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