After breaking through the important consolidation channel Bitcoin (BTC) is now heading to reach the $40,000 price
BTC Aims At $40,000
Bitcoin’s long-awaited breakout from the consolidation channel may herald a rally above $40,000, which would be a major reversal signal for the digital gold, which has been in a downtrend since November.
Bitcoin has successfully bounced off the June 2021 support, which established the cornerstone of a bull run to nearly $70,000, and is currently trading at $32,000, according to the daily chart.
Except for resistance generated by technical indicators such as moving averages, the daily chart shows no resistance levels ahead.
The 50-day resistance line, which functions as a guideline for both up and downtrends, is the first MA resistance that BTC must breach. A breakthrough would normally signal a trend reversal for an asset that moves in both directions.
In the case of Bitcoin, traders and investors have yet to invest massively in digital gold, which is still under heavy selling pressure after dropping almost 24% of its value in a matter of days at the start of May.
Bitcoin has also bounced off the 200-week moving average on longer timescales, such as weekly or monthly. The rebound does not imply that BTC will enter a long-term bullish trend, but it has never fallen below the indicated support level in its recent history.
This week’s trading volume was well below average, with 3,800 BTC exchanged on exchanges like Bitstamp, compared to an average of over 10,000. Bitcoin is currently trading at $31,734 and has shown no movement in either direction as of press time.
After a huge gain yesterday, Ethereum and other altcoins are performing similarly today. According to reports, the market is waiting for the opening of the US stock exchanges.