Bitcoin Price Analysis: BTC is breaking out, record highs back in sight
- BTC/USD teasing falling wedge breakout on the hourly sticks.
- 50-HMA could challenge the bulls’ commitment.
- RSI edges higher above the midline, backing the upside break.
Bitcoin (BTC/USD) is making another attempt towards the $40,000 mark in early Asian trades, having failed to find acceptance above that level last week.
From a short-term technical perspective, the no.1 coin is on the verge of confirming a falling wedge breakout should the price deliver an hourly closing above the falling trendline resistance at $38,713.
BTC/USD: Upside appears more compelling
BTC/USD: Hourly chart
The level is the powerful confluence zone, where the 21-hourly moving average (HMA) coincides. On validation of the upside break, the bulls could meet immediate resistance at the 50-HMA of $39,223.
Acceptance above the latter could expose the $40K mark, beyond which the buyers would target Saturday’s high of $40,997 en-route the all-time-highs of $41,987.
The Relative Strength Index (RSI) is holding firmer, currently at 53.29, above the midline. This makes a stronger case for the additional upside.
Alternatively, the abovementioned key confluence area around $38,720 could be tested on any pullbacks.
Further south, the horizontal 100-HMA at $38,376 could be put to test. A sharp sell-off could be in the offing below the latter, opening floors for a test of the falling trendline support at $36,991.
BTC/USD: Additional levels to watch
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
