After having reached the resistance of the psychological level of $ 40,000 and having gained 41% in a few days, Bitcoin is making a retracement.
This bullish momentum, that BTC had from the low of 29,000, has led it to test the 4/8 murray resistance zone located at $ 40,625 (see the chart).
A technical correction is likely to follow. The eagle indicator is showing an overbought signal. BTC is now trading below the 21 SMA that could be a bearish sign in the short term.
Investors wait for a consolidation at support levels to buy BTC again. The key level is at the 4/8 murray line around 37,500. A technical bounce at this level could be a good opportunity to buy.
If the murray 4/8 line is broken, the bullish bias will remain valid. For this, BTC should consolidate at the 2/8 support and the 200 EMA, both are located at the same level of 34,300. There could be a good opportunity to buy.
A trend reversal could occur if the BITCOIN consolidates below the 33,000 level. The outlook could change and the cryptocurrency market for BTC could fall to the 29,000 zone and up to 25,000.
You may decide to sell below the SMA of 21 at 39,078 with a target of 37,500. If this level is broken, continue to sell until the support of 34,375.
Support and Resistance Levels for July 30 - 31, 2021
Resistance (3) 41,882
Resistance (2) 40,408
Resistance (1) 39,787
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Support (1) 37,624
Support (2) 36,343
Support (3) 34,943
