Bitcoin is attempting to breakout of a month’s long range but faces resistance at $40K-$42K.
Bitcoin (BTC) held support around $34,000 over the weekend and is approaching resistance around $40,000-$42,000. The world’s largest cryptocurrency has been consolidating for nearly a month as buyers established a solid base around $30,000.
A breakout from the range would yield further upside towards $50,000. However, sellers remain in control given strong overhead resistance.
Bitcoin was trading around $39,300 at press time and is up about 9% over the past 24-hours.
- The short-term trend is improving as price returned above the 100-period moving average on the four-hour chart.
- There is immediate resistance at $40,000 which could limit upside, especially as the relative strength index (RSI) appears overbought on the four-hour chart.
- Minor support is seen around $34,000 which is the mid-point of the short-term range. If support holds, a decisive breakout above $42,000 could shift the downtrend from May.