Bitcoin Stuck Near Key $ 40,000 Level

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Bitcoin Needs Additional Catalysts To Settle Above $ 40,000

Bitcoin continues its attempts to settle above the $ 40,000 level as crypto markets lack momentum as traders wait for hints of the world’s leading cryptocurrency.

Ethereum is flat near the $ 2,300 level while XRP drops to the $ 0.70 level. Dogecoin is trying to get back below the 20 ERA at $ 0.2030.

Bitcoin has already made several attempts to settle above the key resistance level at $ 40,000, but has failed to develop sufficient bullish momentum, and it looks like it will need additional catalysts to move into the above this level.

Technical analysis

Bitcoin is currently testing the closest resistance level which is located at $ 40,000. The RSI has recently entered overbought territory, but there is enough room to gain additional bullish momentum in case the right catalysts emerge.

If Bitcoin does manage to establish itself above $ 40,000, it will test the next resistance level which sits at the June high of $ 41,300. A move above this level will be a major development as it will show that Bitcoin is ready to develop further bullish momentum.

If Bitcoin breaks above $ 41,300, it will head towards resistance at $ 42,000. This move should be swift as short sellers will likely rush to close their positions if Bitcoin breaks through June highs.

A successful test of resistance at $ 42,000 will pave the way for testing the next resistance level at $ 44,000. If Bitcoin breaks above this level, it will head towards resistance at $ 46,000.

On the support side, the closest support level for Bitcoin is located at $ 38,000. If Bitcoin does manage to settle below that level, it will gain additional bearish momentum and move towards the next support level which is near the 50 EMA at $ 36,000. A move below the 50 EMA will push Bitcoin to the next support level near the 20 EMA at $ 35,000.

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This article originally appeared on FX Empire

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