Bitcoin price is up 8.5% from its July low of $ 32,700 recorded on both Thursday and Friday. The coin has rallied over $ 3,000 in the past two days, topping the 20-day MA at $ 34,900, and is currently facing a combination of strong levels of resistance over the daily timeframe.

The main resistance is provided by a downtrend line that dates back to mid-May when Bitcoin was trading above $ 50,000. This line forms the top of a potential descending triangle pattern, with the top of the triangle expected to form in about 10 days, while the bottom of the triangle is the price zone around $ 31,000 (where BTC has found support five times since it was first tested on 05/19 .2021).

BTC / USD daily chart | Source: TradingView

Looking at the shorter timeframe, Bitcoin price has been trading in a descending channel since hitting a weekly high of $ 36,620 on Tuesday, and as previously mentioned, it has found support around the $ 32,700 level and one on Thursday and Friday double bottom achieved.

The price then broke out above the descending channel on Friday and began forming a short-term ascending channel by the end of the week. In the early afternoon, BTC rebounded and broke out above the horizontal resistance of $ 34,760 (near the 20-day MA) as it hit a high of $ 35,700 where the top of a descending triangle saves.

BTC / USD 4-hour chart | Source: TradingView

In summary, the formation looks promising for Bitcoin. However, the cryptocurrency has to cross a key resistance area at $ 35,000- $ 36,000, which includes the 20-day MA (~ $ 34,900), a descending trendline, and the 50-day MA (~ $ 36,600). In addition, the daily RSI is also at critical levels – a re-test of the descending resistance line that has been in place since February 2021.

As always – Bitcoin has been trading in the $ 30,000 to $ 42,000 range since mid-May and the price must rise above $ 42,000 for the bull market to resume.

Support and resistance levels to look at

• Major support levels: $ 34,900 – $ 35,000, $ 33,900, $ 33,500, $ 32,700, $ 31,675.
• Major Resistance Levels: $ 36,620, $ 38,000, $ 38,570, $ 39,490, $ 40,500.

If buyers break out of the short-term resistance at $ 35,700, the first major resistance will be found at $ 36,620, provided by the late June high and 50-day moving average. This is followed by $ 38,000, $ 38,570 (Fib extension 1.272), $ 39,490 (early June high) and $ 40,500 (Fib retracement 0.382). The strong resistance then stands at $ 42,000 (January 2021 high).

On the flip side, initial support is in the $ 34,900- $ 35,000 range (20-day MA and short-term ascending channel support line). Below this zone there is support at $ 33,900, $ 33,500, $ 32,700 (July low) and $ 31.675.

The daily RSI is approaching the long-term descending resistance line. A break above this line will go a long way in confirming the short term uptrend.

SN_Nour

According to Cryptopotato

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