Bitcoin seems to have been struggling around $40K for several days from Monday, on Jul. 26th (UTC). It seems that Bitcoin is unable to make a certain move in either direction. However, this could be a positive signal that BTC is trying to find strong support above $40K.
The first major obstacle would be around $40,500 from the perspective of technical analysis. And then should be $41,000. However, it is also worth noting that there’s been a major shift in overall market sentiment following Bitcoin’s ascend to $40K. Comparing the price changes in the past few days, it can be found that when the BTC price exceeded $40,000 some time ago, the RSI value also rose above 90. Later, as the BTC price adjusted, the RSI value also fell below the 90 support. According to the law of historical change, it can be speculated that the current high probability of BTC is only hitting the peak of a stage in the bull market, not the peak of the bull market.
At present, the key support has ushered in a strong rebound, and the RSI has begun to hook upwards. The adjustment is likely to be a strong wash. After this kind of market is washed, the strength will increase again, which is similar to the situation of the previous bull market building up and launching an upside again. At present, it is not recommended to be too bearish without a stable break of $40,000.
Hourly MACD – The MACD is likely to gain pace in the bullish zone.
Hourly RSI – The RSI is now above the 50 level.
Major Support Levels – $38,600, followed by $38,000.
Major Resistance Levels – $40,200, $40,500 and $42,000.
DISCLAIMER: The analysis of cryptocurrencies in real-time should be taken for informational purposes only, and in no case should it be taken as an investment signal. Every investment and trading move involves risk. You should conduct your own research when making a decision.