According to a daily chart, BTC / USD seems to be ready to gain the bullish momentum. So, its price could reach the 200 EMA zone located at $ 45,000. At this time of writing, BTC is consolidating above the strong 6/8 murray resistance around the $ 40,000 psychological level.
The recovery of BTC occurred after it had formed a triple bottom in the support zone of 29,580. In the chart, those three points have been drawn, thus demonstrating that BTC has strong support in the zone of the psychological level of 30,000.
Some say it was just rumors that pushed BTC towards the 40,000 level, after about 40 days, which had been in a consolidation phase bouncing above $ 29,000.
BTC has always reacted to any news, whether positive or negative. For this reason, it is a high risk asset. Interestingly, false rumors gave it a fresh impetus. So, also another rumor could negatively affect it. BTC is very vulnerable to panic and euphoria.
Now, we wait for one last attempt to test the 200 EMA zone around $ 43,750. At this level, the 8/8 of murray converges, so it is likely that this is the top to stop the bullish movement that will be followed by a correction to offset the massive bullish move before BTC decides to undertake another similar upward move.
On the other hand, a correction below the psychological level of 40,000 could be a good opportunity to buy in the 4/8 zone of murray around 37,500. This level will give BTC the strength to challenge the 45,000 zone.
The outlook remains bullish for BTC, as seen in daily charts. As long as Bitcoin trades above the SAM of 21 around 33,376, any pullback towards this zone will be a good opportunity to buy.
Support and Resistance Levels for July 28 - 29, 2021
Resistance (3) 44,548
Resistance (2) 41,882
Resistance (1) 40,735
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Support (1) 37,652
Support (2) 35,225
Support (3) 32,764
The material has been provided by InstaForex Company - www.instaforex.com