Bitcoin price was trading at 44,273 this morning of the American session, close to the strong 6/8 Murray support located at 43,750. We believe there could be a further bullish momentum for Bitcoin due to the formation of a descending wedge pattern.
The 21 SMA located on the 4-hour chart at 45,500 could offer some resistance if BTC starts a bullish cycle, a sharp break above the technical pattern and a consolidation above the 21 SMA could quickly rise to the resistance to 7/8 of Murray located at 46,875 and could reach up to the psychological level of 50,000 (8/8).
Conversely, a break and consolidation below 6/8 of Murray and below the descending wedge pattern may provide an opportunity to sell below 43,000 with targets at 39,703 (EMA 200). If the bearish force continues to prevail, it could go up to the 4/8 Murray level near 37,500.
Our outlook will continue to be bullish for BTC only if it holds above 6/8 Murray with short-term targets towards the level of 50,000. The Eagle indicator is showing an oversold signal with a probability of a new bullish momentum in the next hours.
Support and Resistance Levels for August 19 - 20, 2021
Resistance (3) 47,376
Resistance (2) 46,661
Resistance (1) 45,551
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Support (1) 43,537
Support (2) 43,009
Support (3) 41,889
