• Is Bitcoin Price Set for a Correction After a Weekly Gain of 22%?

  • This week, Bitcoin has gained an amazing 22 percent as it confronts the $40K resistance level. As previously stated, bitcoin’s price has been fluctuating between $30K and 42K for the past two months. This week ($41.3K according to Bitstamp), it reached its highest level since June 15th.

    BTC has had a good week after breaking out of a descending wedge pattern and ultimately breaking through both the 20 and 50 day moving average lines. This was the first time since early May that the cryptocurrency has traded above the 50-day MA. The price increase is mostly contained within a well-constructed ascending price channel.

    Despite the bulls’ positive momentum, BTC is currently testing substantial resistance in the $40-42K level, which is the upper limit of the previously indicated range. Bitcoin hasn’t been able to end a weekly candle over $39K since the meltdown on May 19th. As of writing these lines, the region also includes the 100-day moving average line, which is currently around $40.3K.

    Furthermore, after eight consecutive green daily candles, it appears that Bitcoin may need to cool off a bit, as bearish divergence is seen on the 4-hour chart, which is the short-time frame.

    However, if BTC manages to break through the $40-42K resistance region with a daily and/or weekly close above it, the road to $50K for BTC might be extremely short.

    Support and Resistance Levels to Watch in the Bitcoin Price

    $39,500, $37,000, $36,620, $36,000, $35,000, $34,460 are the key support levels.

    $40,000 – $40,500, $41.3K, $42,000, $43,610, $44,750, $47,800 are key resistance levels.

    The initial resistance zone, which incorporates the 100-day MA and a bearish, is between $40-40.5K.

    382 False. Above $41,300 (June’s high), $42,000 (Jan 2021 highs), $43,610 (1.272 Fib Extension), $44,750 (200-day MA & falling trend line), and $47,800 are all resistance levels (bearish .618 Fib).

    The initial support, on the other hand, is at $39,500. (early-June highs). Support is then found at $37,000, $36,620, $35,000, and $34,460. (50-day MA).

    On the 4-hour chart, a bearish divergence is forming, as previously mentioned. The daily momentum, on the other hand, is obviously in favor of the bulls.

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