Bitcoin Price Prediction: BTC holds crucial support while bulls gaze at $42,000

Bitcoin made its way from the week’s support at $31,000. The move was sharp, resembling a V-shaped pattern. Hence, the recovery stalled at $38,000 as bulls retreated to confirm higher support.

At the time of writing, the flagship cryptocurrency trades at $36,600 after holding at two key levels. Initially, the 50 Simple Moving Average (SMA) ensured that losses do not stretch to $35,000 while a bit of push upward brought BTC above the 100 SMA on the four-hour, currently functioning as the critical short-term support.

Bitcoin bulls focus on securing higher support and gaining ground above $40,000

The Moving Average Convergence Divergence (MACD) has a bullish impulse on the four-hour chart. This is a technical indicator following the trend of an asset and measuring its momentum. The MACD rarely shows oversold and overbought conditions. However, it identifies positions where traders can buy the dip or sell the bottom.

Note that a buy signal occurs when the MACD line crosses above the signal line. The move implies that buyers are gaining immense traction as sellers begin to lose ground. Note that if the MACD moves above the zero line, the market generally starts to trend north, as shown on the Bitcoin chart.

BTC/USD four-hour chart

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BTC/USD price chart BTC/USD price chart by Tradingview

Bitcoin needs to make a four-hour close above the 100 SMA support to validate the uptrend to $40,000. The Relative Strength Index (RSI) is not overbought yet; therefore, bulls have more room for growth in the near term. Following a break above $40,000, traders should anticipate resistance at the 200 SMA. If broken, attention will shift toward $44,000 and $50,000, respectively.

Bitcoin intraday levels

Spot rate: $36,600

Trend: Bullish

Volatility: Low

Resistance: $39,000 – $40,000 and the 200 SMA

Support: 100 SMA and $36,000

The post Bitcoin Price Prediction: BTC holds crucial support while bulls gaze at $42,000 appeared first on Coingape.

Publication date: 
06/11/2021 - 08:04

The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.