Although Bitcoin (BTC) closed at $ 40,000 yesterday, today's low volume prevents it from moving further.
Bitcoin (BTC) has indecisive price movements in the $40,000 band. This could be a sign of fatigue from 8 days of breathless ascent. Today, if the price is not seen above yesterday's peak price of 40,900, a correction may come in the short term. Accordingly, the first support point is the $38,100 support, which coincides with the 89-day EMA.
Daily BTC/USDT chart
Losing the $38,100 support could trigger a reversal to the $36,500 levels. The best bet for Bitcoin right now is consolidation to the $38,100 – $40,000 band. If the 38k band can be maintained as a support point, Bitcoin can find new buyers and the volume can increase in the buyer's direction.
Also, such a sideways move would be beneficial for a healthier uptrend. On the other hand, after a day close above the $40,000 band, an intermediate resistance can be seen at $41,125, and then it could carry BTC up to $44,000. This possibility is still on the agenda, and the last $40,000 attempt was rejected on June 14-15, and the downtrend of BTC/USDT hung below $30,000 occurred.
Looking at the key technical indicators, we see an overheated stochastic RSI. The current movement of the indicator reflects the strength of the bulls as the overbought conditions continue in the daily view. As we said earlier, below 80 can be used to confirm that the correction will deepen.
In the last case, the possibility of a retest of Bitcoin up to the $ 38,100 band outweighs. Such a backtest would result in support from the 89-day EMA, retest the upper band of the falling channel, and gather more supporters from Bitcoin bulls.
Because, according to the July price movements, an important range has been reached in the Fibonacci expansion levels. The Fib 1.272 – Fib 1.618 expansion levels, formed from the $38,600 – $41.125 range, sometimes work as the ideal zone for a possible correction. However, if $41.125 is broken in the 48-hour time frame, we can talk about the continuation of the rise, then the new target can be set as 48,447 after the $44,000 level.
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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.