BTC Price Analysis: Will BTC Price Break The $ 42,000 Resistance?
Bitcoin and the crypto market have been stuck in a range for almost a month and a half. This bored many investors and traders from the market development 6 months ago. The BTC price has to break through and hold the critical zone of 38,000 to 41,000 in order to put an end to this boring range trading. Question: Will BTC price break the USD 42,000 resistance?
Will BTC Price Break The $ 42,000 Resistance?
The overall market traded in the green zone in the last 24 hours. Bitcoin is up almost 8% while Ethereum is up 16%. The best performing coins include Cardano (ADA) and Binance Coin (BNB) as they are up 20%.
BTC / USD opened today at $ 38,361 following bearish consolidation yesterday. Overnight the market began to climb higher again, making slightly higher highs, showing that the bulls are still in control.
The BTC / USD price hovered between $ 36,581 and $ 40,782, showing moderate volatility. The trading volume over the past 24 hours is down 9.2% and amounted to $ 55 billion.
On the 4-hour chart, we can see Bitcoin price action making higher highs and approaching the previous major resistance at $ 42,000.
According to the coin:
BTC price was stuck in a range of almost 6 weeks
RSI is currently breaking the 177-day trendline
50MA has been resistant for almost 2 months
The bulls and bears defended both sides of the channel equally, resulting in massive consolidation. BTC is approaching the top of this channel again, which if broken will result in a big surge to $ 40,000 or higher. $ 36,500 is an important area for traders because if the price can break this mark and hold it, it is expected to rise to 40,000.
The 50-day MA has been acting as a resistance line since the beginning of May (2 months). This MA combines with the upper trend of the descending channel, proving that this area is a high resistance area that will book a free price when the bulls break out. After that, price is likely to fight the important $ 38,200 to $ 40,850 resistance area. If the bulls don’t break this mark, support can be found at $ 36,500, $ 35,100, $ 33,500, and $ 31,000. Anything below these milestones translates into a drop below $ 30,000.
If we look at the RSI, we can see that a large trendline has formed since early 2021. Just today, a strength has formed above that 177-day trendline, which is a great sign that a possible reversal is taking place. The MACD is also rolling below zero and waiting for a breakout in the uptrend. The MACD turned green along with a bullish MA crossover last week. A break above zero will likely bring the BTC price closer to 40,000 again.
Will BTC Price Break The $ 42,000 Resistance? Conclude
The overall market is down more than 50% from its last high of $ 65,000 set in early April. From then on, the market began to recede for several weeks, with key support finally being found at around $ 30,000 on May 19th.
After BTC / USD rose to the $ 30,000 mark, BTC / USD returned to $ 42,000 and reversed again late last week. Several small lower lows were formed until support was found at the USD 32,000 mark, which would mean a higher swing low for several weeks across the market structure.
Hence, we can expect the Bitcoin price action to form a base from which a reversal is possible in the next month. The first sign of a major reversal imminent will be a break of the USD 42,000 resistance. After that, BTC / USD will continue to rebound towards a new all-time high.
The Bitcoin price forecast is bullish as the market has continued to push higher in the past few hours. The price action of several days shows that BTC / USD is forming an important reversal base from which it will rise in the next month. Hence, we can assume that BTC will continue to rise for the remainder of this week, breaking the first target which is the USD 42,000 resistance.
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