The bullish optimism is the main sentiment of the second day after Bitcoin (Bitcoin) The price returns to the important psychological level of $40,000.
In addition to the reversal from this week’s local low of $37,500, the chairman of the US Securities and Exchange Commission Gary Gensler (Gary Gensler) also released Positive reviews Regarding the encryption industry, it reiterated the goal of eliminating fraud in the ecosystem.
Now the price of Bitcoin seems to be back on the $40,000 track. This is what analysts and traders say about top cryptocurrencies.
Table of Contents
Traders are waiting for $40,000 to turn from resistance to support
For many traders, $40,000 is a key level for Bitcoin, and the price performance from here can determine whether the market enters another bullish phase or simply refuses to retest the underlying support level again.
As pointed out by anonymous crypto Twitter analyst Rekt Capital, the price target of $40,000 is close to the 200-EMA, and it is critical for Bitcoin to get some closing prices above this moving average.
If this is recent #BTC The rebound is just an alleviating rebound by turning the 200-day EMA back to the resistance level…
Then Bitcoin May pull back to the blue 50-day moving average
50 DEMA is another EMA, which has been proven in history to help support the bullish upward trend#encryption #Bitcoin pic.twitter.com/AWwP5jomvv
— Rekt Capital (@rektcapital) August 4, 2021
If Bitcoin fails to maintain this level, the 50-day EMA at $26,723 may provide the next area of support. Failure to stay above this level will increase the likelihood that BTC will fall back to July lows.
Rekt Captial says:
“If BTC cannot recover the 200-day EMA soon, it will return to the resistance level and may reject the price to around $30,000.”
Bitcoin is in the “make or break” stage
An anonymous Twitter analyst Fomocap also emphasized the importance of BTC closing price higher than $40,000. He released the following tweet, identifying the price point of $40,400 as a key area worthy of attention.
According to Fomocap, Bitcoin needs to close above $40,400 to consolidate the upward trend, and rejection at this level opens the door to return to the $30,000 range.
According to the provided chart, the next support levels below 37,000 USD are at 34,300 USD and 32,000 USD.
related: New survey shows that panic selling is the biggest mistake of cryptocurrency investors
Even if BTC reaches $40,000, traders will still be hesitant
The indecision in controlling bitcoin prices throughout July continued into August, which means that even if the $40,000 level is recovered, traders will proceed with caution.
Bitcoin 37,000 USD: A bear market, failed as a means of value preservation, see you at 20,000 USD.
Bitcoin of 39,000 USD: The ultimate inflation hedge, the biggest hedging method, see 100,000 USD
— Joseph Young (@iamjosephyoung) August 4, 2021
As far as the current situation is concerned, before traders can gain confidence after setting a record high this year, a more decisive breakthrough is needed to pull the Bitcoin price past the resistance group of US$40,000 to US$43,000.
The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading action involves risk, and you should conduct your own research when making a decision.
