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Bitcoin tries to return to resistance at $ 40,000
Bitcoin managed to find support at the 20 EMA at $ 38,300 after yesterday’s pullback, but continued to trade below the key resistance level at $ 40,000.
Cryptocurrencies found themselves under pressure yesterday after the Fed said it may hike rates sooner than expected. Fed members predict that rates could rise in 2023. The Fed’s hawkish message has bolstered the US dollar and put pressure on riskier assets like stocks and cryptocurrencies.
Ethereum has fallen below the $ 2,500 level but is currently trying to rebound. Dogecoin has risen to $ 0.31 and its technical situation looks rather weak at this point. However, it should be noted that the Fed’s new message did not cause a massive sell-off in the crypto market, which is a welcome development for crypto bulls.
Technical analysis
Bitcoin has failed to settle below the 20 EMA support at $ 38,300 and is trading in the range between the 20 EMA and the resistance at $ 40,000. The RSI remains in moderate territory, and there is plenty of room for some upside momentum.
However, recent attempts to move above the key resistance at $ 40,000 have yielded no results, although Bitcoin has managed to trade above this important level for some time.
Bitcoin needs to settle above $ 40,000 to have a chance to develop further bullish momentum. If Bitcoin manages to move above this level, it will head for the next resistance at the 50 EMA near $ 42,000.
A move above the 50 EMA will signal that Bitcoin is ready to continue its bullish movement. The next resistance is at $ 44,000. A move above $ 44,000 will push Bitcoin towards resistance at $ 46,000.
On the support side, a move below the 20 EMA will pave the way for testing the next level of support which sits at $ 37,000. In the event that Bitcoin falls below the support at $ 37,000, it will gain additional bearish momentum and move towards the next support level at $ 35,000.
For an overview of all of today’s economic events, check out our economic calendar.
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This article originally appeared on FX Empire
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