Bitcoin attempts range breakout, faces resistance at $42k
|Bitcoin (BTC) held support around $34,000 over the weekend and is approaching resistance around $40,000-$42,000. The world’s largest cryptocurrency has been consolidating for nearly a month as buyers established a solid base around $30,000.
A breakout from the range would yield further upside towards $50,000. However, sellers remain in control given strong overhead resistance.
Bitcoin was trading around $39,300 at press time and is up about 9% over the past 24-hours.
-
The short-term trend is improving as price returned above the 100-period moving average on the four-hour chart.
-
There is immediate resistance at $40,000 which could limit upside, especially as the relative strength index (RSI) appears overbought on the four-hour chart.
-
Minor support is seen around $34,000 which is the mid-point of the short-term range. If support holds, a decisive breakout above $42,000 could shift the downtrend from May.
Bitcoin four-hour chart shows short-term support and resistance levels with RSI.
Source: TradingView
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.