Bulls still hold control over BTC above $38k but BTC price could drop to $36k if bears break a key support level in the daily chart
Bitcoin (BTC), up 3.6% over the past 24 hours, as bulls fight selling pressure amid optimism the benchmark cryptocurrency could once again break the $40,000 barrier. The move comes amid optimism that it will surpass last week’s highs at $42,629.
Yesterday’s Bitcoin price rose 4% in response to positive comments made by Gary Gensler (US Securities and Exchange Commission) about BTC. Talk to CNBC, Gensler said that he is “pro innovation” and that he supports favourable crypto regulations designed to help the industry grow.
Bitcoin’s price hovers around $39,405, with cumulative intraweek losses at 2.2%. BTC/USD has a 24-hour range between $37,703 and $39,979 which suggests that bulls aren’t taking the advances of bulls lightly, as was evident during Thursday’s early action.
Rekt Capital, a pseudonymous crypto analyst, says Bitcoin must break $40,000 in order to continue growth. However, a pullback down to $36,000 or less is still possible.
If you are a recent #BTC bounce is merely a relief rally to flip the 200-day EMA back into resistance…
Next $BTCThe blue 50-day EMA could be reintroduced
— Rekt Capital (@rektcapital) August 4, 2021
The outlook for Bitcoin prices
BTC/USD is slightly bullish on the weekly chart with price above 50MA and RSI in neutral zone. The MACD indicates a possible flip bullish. The current candlestick’s price high is higher than the previous close. This means that bulls will have an advantage if the price remains above $38,409 support.
BTC/USD Weekly Chart Source: TradingView
However, the bearish picture could intensify if prices fall further over the next three trading days. A declining 20MA is a sign of bearish pressure. Bulls will attempt to break the $43,600 resistance zone, according to the prognosis. The downside support is at close to $33,450.
Despite yet another rejection of the $40,000 level, the daily chart looks promising. The Doji candle appeared on the market, and the price settled at the close of the previous candle on 29 July.
BTC/USD moved higher after indecision appeared in the bulls favor, but the subsequent four candles worked out the correction and reached highs at $42,496. Then, a textbook bounce off of the 38.2% Fibonacci Retracement level at 37,000532 was achieved.
Daily chart of BTC/USD Source: TradingView
Bulls are facing downward pressure at the 23.6% Fibonacci level of $39,430. If there are any new price falls, the 38.2% Fib level will provide immediate support.
Other support levels include the Fibonacci retracement levels at 50% and 61.8%, which are around $35,000.999 and $34,465 respectively.