Bitcoin Shatters Bear Hopes, Shatters Resistance: What’s Next?

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Bitcoin (CRYPTO: BTC) broke away from a bullish flag on August 4 and continued to climb. On Monday, the apex cryptocurrency broke through strong resistance and topped $ 45,000.

On Sunday, the US Senate continued to debate cryptocurrency regulations in the infrastructure bill, which is now expected to get a final vote on Tuesday before heading to the House of Representatives.

This weekend, Senators Mark Warner and Rob Portman revised their amendment and attempted to “pick” which cryptos might survive or fail by requiring “proof of stake” crypto miners to report to the IRS while by exempting “proof of work” miners from doing so. The amendment has been widely condemned by the crypto community and CEO of Coinbase Global Inc (NASDAQ: COIN) Brian Armstrong and CEO of Tesla Inc (NASDAQ: TSLA) Elon Musk expressed their concern on Twitter.

However, Bitcoin has not reacted negatively to the news and continues to climb into a price range that it has not traded since May.

See also: How to buy Bitcoin

The Bitcoin Chart: On Monday morning, Bitcoin broke Sunday’s daily high after testing support for the daily eight-day exponential moving average (EMA). Crypto has risen by around 23% since the breaking of the daily bullish flag pattern, but with the pattern’s measured movement being around 43%, Bitcoin could soar further north over the next few days.

Bitcoin has historical price support / resistance at $ 44,850 and the 200-day Simple Moving Average (SMA) has aligned with this. On Saturday and Sunday, the cryptocurrency struggled at levels but was able to appear above on Monday. The bulls will want Bitcoin to close the day on the 200 day SMA so that overall sentiment in crypto is seen as bullish.

Bitcoin is trading above the eight-day and 21-day EMAs with an eight-day trend above the 21-day, both of which are bullish indicators. Bitcoin’s Relative Strength Index (RSI) is slightly elevated at around 71% and sideways consolidation is needed to lower Bitcoin from overbought territory.

The bulls want to see Bitcoin consolidate on shorter time frames to cool the RSI below 70% and then for a large bullish volume to come in and push the crypto to a higher resistance level at $ 48,817. If Bitcoin was able to recover the level as support, it could trade towards the $ 51,191 level. The bears want to see a big bearish volume come in and push Bitcoin down below the support of the 200 day SMA and the support level of $ 44,850. If Bitcoin loses support levels, it could drop to $ 42,233.

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