Bitcoin Tests The Key Resistance At $40,000

Bitcoin Video 26.05.21.

Bitcoin Tries To Gain Additional Upside Momentum

Bitcoin is trying to settle above the key resistance level at $40,000 while the crypto market is moving higher. Ethereum has already gained strong upside momentum and is trying to get to the test of the $3,000 level.

The current market mood is bullish as traders look ready to shrug off fears about crackdown on Bitcoin mining in China. It should be noted that global market mood remains bullish which provides support to riskier assets, including cryptocurrencies.

Bitcoin’s test of the $40,000 level is an important event for the whole crypto market as it will show whether there is enough buying interest at higher levels. Cryptocurrencies are very dependent on momentum, and the inability to gain such momentum above the $40,000 level will signal that another wave of selling may be around the corner.

Technical Analysis

Bitcoin continues its attempts to settle above the key resistance level at $40,000. There is plenty of room to gain additional upside momentum, and a successful test of this level will quickly push Bitcoin towards the next resistance at $42,000.

A move above $42,000 will open the way to the test of the resistance at the 20 EMA at $44,000. If Bitcoin manages to settle above the 20 EMA, it will continue its upside move and head towards the resistance at $46,000.

On the support side, the nearest support level for Bitcoin is still located at $37,000. Bitcoin made an attempt to settle below this level during yesterday’s trading session but failed to develop sufficient downside momentum.

If Bitcoin settles below $37,000, it will move toward the next support at $35,000.  A move below the support at $35,000 will be a worrisome development for the bulls as it will indicate that Bitcoin’s downside trend continues. In this case, Bitcoin will head towards the support at $32,000. A successful test of this level will push Bitcoin towards the recent lows at $30,000.

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