Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
Bitcoin Technical Forecast: BTC/USD Rises as $40,000 Remains Key

Bitcoin Technical Forecast: BTC/USD Rises as $40,000 Remains Key

What's on this page

Bitcoin Outlook: Neutral

  • Bitcoin prices rebound to end the week in the green
  • BTC/USD breaks $40,000 but risk sentiment remains vulnerable to developments in the Russia, Ukraine war
  • Technical levels hold firm as price action tests another big spot of resistance
Advertisement

Visit the DailyFX Educational Center to discover how to trade the impact of politics on global markets

Bitcoin Reclaims $40,000 But Big Levels Limit Gains

It’s been a positive week for Bitcoin and other cryptocurrencies as a more ‘risk-on’ sentiment supported the demand for equities and digital assets, pushing prices higher. Although Bitcoin remains vulnerable to elevated geopolitical risks and increased volatility, key technical levels have provided firm levels of support and resistance which continue to hold both bulls and bears at bay.

Introduction to Technical Analysis

Learn Technical Analysis

Recommended by Tammy Da Costa

Start Course

However, after being trading in a relatively narrow range, the executive order signed by US President Joe Biden promoting the responsible development of digital assets and the legalization of cryptocurrencies in Ukraine provided a more optimistic outlook for the industry, allowing Bitcoin bulls to drive prices back above the key psychological level of $40,000 which remains as a big level of support.

Trading Forex News: The Strategy
Trading Forex News: The Strategy
Recommended by Tammy Da Costa
Trading Forex News: The Strategy
Get My Guide

With price action currently testing trendline resistance at around $41,000, bulls now need to clear the next level of resistance at the $43,352 Fibonacci level (the 38.2% retracement of the April – May 2021 move) which may open the door for a move towards the 50-day MA (moving average), currently holding at $46,188.

Bitcoin (BTC/USD) Weekly Chart

Source: TradingView, Chart by Tammy Da Costa

Meanwhile on the daily time-frame, BTC/USD is currently trading above the 50-day MA (moving average) which has formed an additional layer of support, just above the big $40,000 mark. While the MACD (moving average convergence/divergence) remains in negative territory (a potential indication that the bearish trend remains intact), a crossover below the zero line suggests that bears may be losing steam.

Cryptocurrency Trading
Cryptocurrency Trading
Recommended by Tammy Da Costa
Download Your free Bitcoin Trading Guide
Get My Guide

Bitcoin (BTC) Daily Chart

Source: TradingView, Chart by Tammy Da Costa

If bears manage to regain control of the trend, a break below $40,000 could give rise to a retest of $38,257 (the 23.6% retracement of the above-mentioned move) with the next big spot of support holding at $36,000.

The Quiz
Discover what kind of forex trader you are
Start Quiz

--- Written by Tammy Da Costa, Analyst for DailyFX.com

Contact and follow Tammy on Twitter: @Tams707

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES