Bitcoin wobbles to $40,000, but weak technical levels delay upswing to $50,000
May 21st, 2021
Bitcoin price is pivotal at $40,000, whereby bulls lack the momentum to extend the gains to $50,000 and barricade the downside, eliminating all bearish threats. The 40% recovery from the support at $30,500 fizzled out at $43,000, marking the most formidable technical resistance.
Meanwhile, the flagship cryptocurrency trades slightly above $40,000 amid a persistent push by the bulls to break above the descending parallel channel’s upper boundary. With support at $40,000 secured, the bulls’ focus is bound to shift to breaking barriers at $43,000 and $47,000.
Bitcoin bulls battle to bag another win
The cryptocurrency, mainly Bitcoin, has been a playing field for the bears this week. However, the recovery above $40,000 proves that investors anticipate higher gains in the coming days.
According to the Moving Average Convergence Divergence (MACD), BTC is in the bulls’ hands. The massive bullish signal comes after the MACD line (blue) crossed above the signal line. It is worth mentioning that a move such as this implies that traders should consider holding or increasing their stakes. Therefore, the least resistance path is upward, at least for the short term.
BTC/USD four-hour chart
On the other hand, the Relative Strength Index has started leveling marginally above 40 and after stalling short of the midline. This shows that buying pressure is not strong enough to sustain the uptrend, but formidable support exists, keeping Bitcoin afloat.
The upper boundary of the descending channel also adds credence to the apparent overhead pressure. Hence, it must be broken to pave the way for gains toward $50,000. Traders should also expect delays at $43,000 and $47,000, respectively.
Bitcoin intraday levels
Spot rate: $40,550
Support: $40,000 and $38,000
Resistance: $43,00 and $47,000