Bitcoin failed to flip $40,000, and traders set their sights on $36,000 or lower for support

Bitcoin (Bitcoin) It encountered strong resistance after approaching USD 41,000 on July 28, as the market demanded to consolidate the recent gains.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

40,000 USD is not yet available as new support

Data from Cointelegraph Markets Pro and Transaction view Following the progress on Wednesday, BTC/USD fell back to below $40,000.

The pair started at Trendy This makes it move towards heavy range resistance, but ultimately lacks the motivation to change its existing paradigm.

At the time of writing, Bitcoin is focused on $39,500 and has fallen to a low of $39,300.

For Cointelegraph contributor Michael van de Poppe, retracements are not only welcome, but also essential to consolidate the prospect of new higher levels and further breakthroughs.

Bitcoin, he Say On Wednesday, higher lows need to be closed.

He explained: “After such a trend, what you want to see is that the price will hit a higher low, and it is best to see it happen in the range of about 34,500 US dollars,” and pointed out that this was a feeling before. Area of ​​interest.

He added that the two sides of this level of higher and lower buildings cost US$32,500 and US$36,000 respectively.

The cryptocurrency trading company QCP Capital takes a cautiously bullish short-term view, while acknowledging that the upper limit of the range ($42,000) is unlikely to change before the option expiration event on Friday.

“Aside from technical analysis, our feeling is that the market will continue to seek to trade in the 30-40k range in the short term,” the company told Telegram channel subscribers.

“Entering the expiration at the end of the month on Friday, we expect that 40-42k will be held because the OI peaks here, with a nominal value of 11k BTC (Figure 5). We expect this level to become a magnet for expiration on Friday. The long-term gamma fixes it to this price zone.”

Never mind the golden cross

Another topic among traders on Wednesday involved a long-term phenomenon: the so-called “golden cross.”

related: As the unlocking fear subsides, the GBTC premium matches the level of the Bitcoin price collapse

Formed by the rising 50-day moving average breaking through the 200-day moving average, the golden cross is the opposite of the death cross. This feature triggers Considerable debate When it entered the BTC/USD chart in mid-June.

Now, due to the price increase this week, the possibility of a golden cross and its associated bullish impact are “not trivial,” Van de Poppe said, and at the same time believes that as a feature, it is of little importance to the overall market.

Trader and analyst Rekt Capital also accepted the golden cross narrative and predicted that it will be realized as soon as next month.