Bitcoin Price Prediction: BTC/USD Retraces Below $42,000
Bitcoin Price Prediction – August 1
The Bitcoin price indicates bearish momentum as further upside was rejected overnight and bullish momentum has been lost.
BTC/USD Long-term Trend: Ranging (Daily Chart)
Key levels:
Resistance Levels: $47,000, $49,000, $51,000
Support Levels: $36,000, $34,000, $32,000
At the time of writing, BTC/USD is hovering at $41,437. There have been instances when BTC has exchanged hands below $41,000 sustaining the bearish price action is a downhill task. At the time of writing, the path of least resistance is still downwards and the daily chart shows that the formation of a bearish may come to play.
Bitcoin Price Prediction: BTC Fails at Crucial Resistance
Looking at the technical indicator Relative Strength Index (14) is moving towards the east; with the look of things, the Bitcoin price is not yet done with the upside. Despite the drop suffered today, the Relative Strength Index (14) is still hovering within the overbought region. This could mean that there may still be a room that could be explored by the bulls as the Bitcoin price may continue to follow the uptrend in as much as the king coin remains above the 9-day and 21-day moving averages.
On the upside, recovery may not come easy as the support will have to be sort for above the upper boundary of the channel. Meanwhile, a sustainable move above this barrier could be located at $43,500, which may allow for an extended recovery towards the resistance levels at $47,000, $49,000, and $51,000. However, an increase in selling pressure across the market could force the Bitcoin price towards a painful path and through various tentative supports at $36,000, $34,000, and $32,000.
BTC/USD Medium-Term Trend: Bullish (4H Chart)
When checked on the 4-hour chart, the Bitcoin price is now trading within the 9-day and 21-day moving averages. BTC/USD has just survived the $41,000 support as the market is trying to recovery from the bearish momentum. However, BTC/USD is likely to return to the bull market if the price breaks above the 9-day and 21-day moving averages. Meanwhile, higher resistance could be located at the $44,000, and as the technical indicator Relative Strength Index (14) moves to cross below 60-level.
On the other hand, if the bearish movement steps back, the support level of $40,500 may not be able to hold the selling pressure. More so, BTC/USD is likely to fall to $39,000 and below if the price falls below the lower boundary of the channel.
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