Bitcoin is up by a total of 20% this week and it’s back at the $40K mark range.
Quick recap: BTC bounced from $34,760 on Sunday and surged even more on Monday to break the early June significant highs at $39,500 and even reach resistance at $40,760 (bearish .382 Fib Retracement).
The bullish momentum stalled slightly since reaching the resistance at $40,760 but manages to remain above $39,500 (early-June highs) and created a short-term tight trading range.
In addition, BTC is trading above a short-term rising trend line and is also trading inside a rising wedge formation, which is all best seen on the following 4-hour chart. Rising wedge tends to be a bearish formation, but often in bull markets we see a bullish breakout of the pattern.
Another way to look at it is the short-term rising trend line and the resistance at $40,760 are creating the formation of a short-term ascending triangle pattern.
From the bullish side, there are small hints that BTC should push higher and finally break $40,760 soon as there is hidden bullish divergence on the 4-hour RSI, with the RSI making lower lows and price action making higher lows. Despite that, Bitcoin still marks $42K zone as the next major level of resistance, which includes previous January 2021 highs and the 200-days moving average line.
BTC Price Support and Resistance Levels to Watch
Key Support Levels: $40,000, $39,500, $38,430, $36,750, $34,760.
Key Resistance Levels: $40,760, $42,000, $42,720, $43,600 – $44,000, $44,750.
Looking ahead, if the buyers break resistance at $40,760 (bearish .382 Fib), the first resistance lies at $42,000 (Jan 2021 highs). This is followed by $42,720 (1.272 Fib Extension & 200-day MA), $43,600 (1.414 Fib Extension), $44,000 (50-day MA),and $44,750. Added resistance lies at $46,000 and $47,360 (bearish .618 Fib).
On the other side, the first major support lies at $40,000. This is followed by $39,500 (early-June highs), $38,430 (4-hour’s MA-200 line), $36,750 (.786 Fib & 20-day MA), and $34,760 (downside 1.414 Fib Extension).
As mentioned, the 4-hour RSI is showing hints of hidden bullish divergence. Additionally, the RSI is now showing the highest level of bullish momentum since mid-May 2021 – before the market crash. This suggests that the buyers might be starting the recovery.
Bitstamp BTC/USD Daily Chart
Bitstamp BTC/USD 4-Hour Chart
Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).
PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.