BTC Surges Inside Rising Price Channel And Hits $40K Resistance
- BTC is now up a massive 26% over the past 7-days as it knocks on the door at 40K.
- The cryptocurrency is now experiencing the first strong bullish move since the mid-May market collapse.
- 40K to
42K still remains a very significant resistance to overcome.
Bitcoin is up a strong 26% over the past week after the rumors of Amazon entering into the cryptocurrency space helped to propel the market higher. BTC managed to break above a descending wedge formation in the past seven days as it started to rocket higher.
Over the weekend, the cryptocurrency managed to break above the 50-day EMA level for the first time since early May. It continued much higher at the start of this week, surging above $38,000 yesterday and hitting the resistance at the 100-day EMA level at $40,560. A bearish .382 Fib Retracement level further bolsters this resistance on the daily chart.
Bitcoin Price Analysis
What has been going on?
The daily chart shows a clear breakout of the descending wedge formation that had formed during the mid-May market collapse. BTC had been trapped within this falling wedge through June and most of July, preventing the market from creating any sort of meaningful bullish push higher.
The breakout of this wedge occurred last week, and it allowed BTC to kickstart a rally higher to reach the 100-day EMA level today at around $40,560.
The 4-hour chart provides a better perspective of what is going on here. We can clearly see the breakout of the wedge (orange lines) occurring last week. Since then, BTC started to trade inside a very steep ascending price channel.
On the way up, the coin did find short-term resistance at $34,700, which had prevented the market from breaking the wedge on the last attempt earlier in July. After breaking $34,700, it then found resistance at the upper angle of the price channel but ended up finding support at $36,665, which was resistance for the market toward the end of June.
Today’s rally saw BTC rising above $40,000, but it is now facing resistance at $40,560, provided by a bearish .382 Fib Retracement level.
Bitcoin price short-term prediction: NEUTRAL
Bitcoin still remains neutral in the short term and would have to break above resistance at $42,000 to start to turn bullish again. On the other side, a closing candle beneath 30K would turn the market bearish again.
If the sellers do push lower, the first support lies at $39,000. This is followed by support at $38,130 (.236 Fib Retracement) and $36,660 (lower angle of the price channel).
Beneath the price channel, support lies at $36,000, $35,000 (.5 Fib Retracement), and $34,700. The support there is further bolstered by the 20-day and 50-day EMA on the daily chart.
Where Is The Resistance Toward The Upside?
On the other side, the first strong resistance lies at $40,560, provided by the 100-day EMA and a bearish .382 Fib Retracement level. Above this, resistance lies at $42,000, $42,600, $43,570 (1.272 Fib Extension), and $44,190 (bearish .5 Fib Retracement).
Added resistance lies at $45,166, $46,000, $47,000, and $47,820 (bearish .618 Fib Retracement).
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