Bitcoin has resumed its rally, and the bulls have their sights set on the $45k resistance region
The cryptocurrency market resumed its rally yesterday after a slight correction on Monday. Bitcoin corrected lower after touching the $40k mark on Monday, with the cryptocurrency declining below the $38k support level.
The rally resumed yesterday, with Bitcoin’s price now up by over 7% in the past 24 hours. At the time of writing, Bitcoin is closing in on $40k again, and market experts are optimistic it could reach the $45k support level in the coming hours. The feeling of bullishness is strong within the crypto community, and this might push Bitcoin’s price higher in the coming days.
#Bitcoin still acts in resistance here, through which I’m not expecting a breakout to be happening, yet.
Preferably, you’d like to see a higher low being constructed, before a breakout occurs.
Especially with everyone becoming ultra bullish. pic.twitter.com/ApZTzvvX2V
— Michaël van de Poppe (@CryptoMichNL) July 28, 2021
BTC price outlook
The BTC/USD 4-hour chart is extremely bullish at the moment, following its performance over the past few days. Bitcoin is trading above its 4-hour 100-day simple moving average ($33,141), with several of its indicators also bullish.
The MACD line is in the bullish zone, while the RSI currently reads overbought for Bitcoin. The leading cryptocurrency seems to be positioned nicely above the 76.4% Fib retracement level of the downward move from the $40,520 swing high to $36,400 swing low.
BTC/USD 4-hour chart. Source: Coinalyze
The first major resistance for Bitcoin is near the $40,500 level. A successful break above that region could see BTC target the next resistance level, around $42,000 in the short term. In the event of an extended market rally, Bitcoin could reach $45,000, which is a major resistance level for the cryptocurrency.
However, if the market trend changes, the bulls would have to defend the first major support level near the $38,800 zone. Any further downside movement could see Bitcoin break below the $38,800 support, bringing the $37,500 support level into focus. However, Bitcoin should be able to steer clear of the sub-$37,000 level following its recent performance.
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Author: Hassan Maishera