BTC Price Analysis: Bitcoin Nears Breakout of 46 Day Channel, Will BTC Price Break $42,000 Resistance?
- BTC price is stuck in a range for nearly 6 weeks
- RSI is currently breaking 177 day trend line
- 50MA has been resistance for nearly 2 months
Bitcoin and the broader cryptocurrency market have been stuck within a range for nearly a month and a half. This has lead many investors and traders to boring times compared to the previous 6 months of the market movement. This is completely normal and expected after such a bullish trend that was seen since March of 2020. BTC price needs to break and hold its important zone of 38k-41k to put this boring, range trading to an end.
As seen in light green, BTC has been trading within a descending channel the last 45 days. Bulls and bears have equally defended both sides of the channel leading to a large consolidation that has taken place. BTC is nearing the top of this channel yet again which if broken, will lead to a large move to $40,000 or above. $36,500 is the important zone for traders to be watching as if price can break & hold this mark, a push to 40k is expected.
BTC Price Analysis: BTC/USDT 1 Day Chart
The 50 Day MA has acted as a resistance line since early May (2 months). This MA is coupled with the top trend of the descending channel which proves this area to be a high resistance zone that will set price free if bulls manage the breakout. Price will then likely battle the major resistance zone of $38,200-$40,850. If Bulls fail to break this mark, support can be found at $36,500, $35,100, $33,500 & $31,000. Anything below these marks will turn a bearish outcome under $30,000.
While looking at the RSI, we can see a large trend line has formed since the beginning of 2021. Just today, the strength has formed a line above this 177 day trend which is great sign that a trend change may be happening. The MACD also sits in a coiled fashion below the 0 value, awaiting a bullish breakout. The MACD turned green the last week along with a bullish cross of the MA’s. A break above the 0 value will likely send BTC price back to near 40k.
BTC price intraday levels
- Spot rate: $35,300
- Trend: Neutral
- Volatility: Medium
- Support: $35,000
- Resistance: $36,600