Bitcoin (BTC), continuing its short-term uptrend, stepped back into the $40,000 range today. Bitcoin has been rising without correction for a week and seems to have broken critical resistance levels.
Bitcoin price broke out of the falling channel with a close of $39,457 and made its first serious breakout move. An attempt to break the upper line of the channel at the beginning of the week had failed, but the king coin rapidly recovered yesterday, is now starting to form a solid uptrend.
Daily BTC/USDT Chart
Bitcoin signaled today's rise by closing the day above the critical 89-day EMA (red) value at an average of $38,100. Now the $38,100 level has turned into the main support. On the other hand, the closing of the day at the $40,000 band may help limit potential corrections.
According to the daily Bitcoin chart, the downtrend that started after losing the $60,000 band in May has now ended at $29,300 on July 20. Starting from this low, the uptrend is testing the Fib 0.382 high at $40,579 today.
According to the Bitcoin chart, which we examined in a 2-month period, the Fib value of 0.382 has been tested twice before. The first of these was on June 15, and when the break did not occur, BTC was exposed to sales that reached under $ 30,000. 2 attempts took place on the 26th July rise. This time, however, the recovery was fast and we are now in the 3rd Trial phase.
Today, the $ 40,500 band is passed smoothly and if a day closes above this price; We could see a quick move towards $44,000. The next target is $47,560. $47,560, which coincides with Fib 0.618, could be a direction decision point for Bitcoin traders in the medium term.
In a possible corrective move, $38,100 could be followed as the first support. Below this level, $36,300 (fib 0.236 and the 8-day EMA) could act as a second support point.
What do the important indicators say for Bitcoin?
Stochastic RSI, one of the technical indicators that we follow regularly, is currently peaking in the overbought zone and moving sideways. This can be interpreted as a situation indicating that the bulls are getting stronger. However, if the sellers become dominant in a decrease in the buying volume, a drop of the stoch RSI below 80 can be considered as the correction deepening.
On the other hand, the fact that the CMF indicator moves into the positive zone in the daily outlook and gains a steep momentum is an extremely important signal for the continuation of the rise.
In summary, after closing the day above $ 40,500, we can see that the BTC/USDT parity can continue towards $ 44,000 this week. Otherwise, the $38,000 – $36,000 band remains current as an important support area.
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Disclaimer: The information in the content is not an investment advice. Author is not responsible for your profit or loss. Every investment involves risks and requires knowledge.