Bitcoin has proved to investors that it can come out of the ditch it fell into last week by gaining considerable ground to $40,000. However, increasing skepticism in the market limits Bitcoin’s ability to continue with the uptrend. BTC corrected from highs around $40,000 but secured support at $36,400.
In the meantime, the price has recoiled above $39,000 and is in the process of brushing shoulders with $40,000. A confirmed break above $40,000 is required to validate the uptrend toward $50,000. More investors will enter the market as BTC reclaims some of the anchors at $43,000 and $46,000.
The Moving Average Convergence Divergence (MACD) has since the drop to $30,500, ascertained the trend inclining to the bullish side. This move has seen the indicator shrink the gap toward the zero line (0.00). Moreover, the MACD line’s (blue) divergence from the signal line adds credence to the bullish outlook.
BTC/USD four-hour chart
Precisely, Bitcoin trades slightly above $39,000 at writing. On the downside, the 50 Simple Moving Average (SMA) provides immediate support, helping bulls to focus on gains above $40,000.
Looking at the other side of the fence
The Relative Strength Index (RSI) has a bearish outlook as it points downward. This indicator shows that buyers lack the power to crack the key $40,000 resistance. Hence, exhaustion could wear down the bulls, giving way to another correction toward $36,000.
Bitcoin intraday levels
Spot rate: $39,286
Trend: Bearish biased
Support: $36,400 and $34,500
Resistance: $40,000 and $43,000
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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