Bitcoin Finds Support At 20 EMA But Stays Below Key Resistance At $40,000

Bitcoin Tries To Get Back To The Resistance at $40,000

Bitcoin managed to find support at the 20 EMA at $38,300 after yesterday’s pullback but continued to trade below the key resistance level at $40,000.

Yesterday, cryptocurrencies found themselves under pressure after Fed indicated that it may raise rates sooner than expected. Fed members project that rates may rise in 2023. Fed’s hawkish message provided support to the U.S. dollar and put pressure on riskier assets like stocks and cryptocurrencies.

Ethereum declined below the $2,500 level but is currently trying to rebound. Dogecoin moved towards $0.31, and its technical picture is looking rather weak at this point. However, it should be noted that Fed’s new message did not cause a major sell-off in the crypto market, which is a welcome development for crypto bulls.

Technical Analysis

Bitcoin failed to settle below the support at the 20 EMA at $38,300 and trades in the range between the 20 EMA and the resistance at $40,000. RSI remains in the moderate territory, and there is plenty of room to gain upside momentum.

However, recent attempts to settle above the key resistance at $40,000 yielded no results although Bitcoin managed to trade above this important level for some time.

Bitcoin needs to settle above $40,000 to have a chance to develop additional upside momentum. If Bitcoin manages to settle above this level, it will head towards the next resistance at the 50 EMA near $42,000.

A move above the 50 EMA will signal that Bitcoin is ready to continue its upside move. The next resistance is located at $44,000. A move above $44,000 will push Bitcoin towards the resistance at $46,000.

On the support side, a move below the 20 EMA will open the way to the test of the next support level which is located at $37,000. In case Bitcoin declines below the support at $37,000, it will gain additional downside momentum and head towards the next support level at $35,000.

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