Bitcoin skyrocketed from $29,000 on July 20 to $46,800 on August 10. This rise represents a 55% increase for a few days of trading.
BTC has stopped its bullish rally just below the +2/8 Murray line, after having consolidated with about 7 4-hour candles. It is showing a sign of exhaustion. There is no bearish signal yet, but if bitcoin consolidates below the 21 SMA located at 44,382, the downward pressure will be triggered.
A pullback is likely. However, as long as it remains above the 21 SMA or makes a technical bounce above this zone, the bullish force will continue to prevail.
In the case of a bullish climb, the resistance levels are located at $46,875 and the psychological level at $50,000. As long as it remains below the 61.8% Fibonacci ($51,096), any attempt to approach this level will only be a technical correction for a continuation of the main bearish move.
On the contrary, if bitcoin consolidates below the SMA of 21 located at 44,382 in 4-hour charts, it will be an opportunity to sell with targets up to the psychological level of 40,000 and the level of the 6/8 line of Murray located at 40,625.
We expect BTC to move within a price range between 40,000 support zone and 46,800 resistance. The Eagle indicator has a bullish signal, so BTC could continue to rally after a brief setback.
In addition, a potential increase in selling pressure that pushes BTC below 37,500 monthly pivot zone and the 200 EMA level will negatively affect the bullish rally and could enable a new medium-bearish sequence with targets at the low of 29,000.
Support and Resistance Levels for August 10 - 11, 2021
Resistance (3) 49,985
Resistance (2) 48,532
Resistance (1) 46,854
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Support (1) 43,253
Support (2) 41,127
Support (3) 38,892
