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Monday, March 27, 2023

Bitcoin Broke Through Important Resistance, Now Aims at $40,000

Bitcoin Broke Through Important Resistance, Now Aims at $40,000 – Bitcoin’s long-awaited breakthrough from the consolidation channel may signal a rally above $40,000, which would be the major reversal signal for the digital gold that has been in a downtrend since November.

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Bitcoin has successfully bounced off the June 2021 support, which established the foundation of a bullrun to nearly $70,000 and is currently trading at $32,000, according to the daily chart. Except for resistances generated by technical indicators such as moving averages, the daily chart shows no resistance levels ahead.

Also Read: Korean Government Considers Imposing Unified Listing Standard on Crypto Exchanges After LUNA, UST Collapse

The 50-day resistance line, which functions as a guideline for both up and downtrends, is the first MA resistance that BTC must break. For an asset that moves in both directions, a breakthrough would normally signal a trend reversal.

In the case of Bitcoin, traders and investors have yet to invest massively in digital gold, which is still under heavy selling pressure after losing almost 24% of its value in a matter of days at the beginning of May.

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Bitcoin has also bounced off from the 200-week moving average on longer timescales, like weekly or monthly. The bounce does not imply that BTC will enter a long-term bullish trend, but it has never fallen below the indicated support level in its modern 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 at press time.

Also Read: Latam Cryptocurrency Exchange Bitso Announces Layoffs Amidst Expansion to Colombia

Bitcoin Broke Through Important Resistance, Now Aims at $40,000 – Ethereum and some other altcoins are showing neutral performance after a strong rally. According to reports, the market is waiting for the opening of the US stock exchanges.

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