Bitcoin Price Forecast: BTC needs to break $40,000 to validate the uptrend toward $50,000

Bitcoin has proved to investors that it can come out of the ditch it fell into last week by gaining considerable ground to $40,000. However, increasing skepticism in the market limits Bitcoin’s ability to continue with the uptrend. BTC corrected from highs around $40,000 but secured support at $36,400.

In the meantime, the price has recoiled above $39,000 and is in the process of brushing shoulders with $40,000. A confirmed break above $40,000 is required to validate the uptrend toward $50,000. More investors will enter the market as BTC reclaims some of the anchors at $43,000 and $46,000.

The Moving Average Convergence Divergence (MACD) has since the drop to $30,500, ascertained the trend inclining to the bullish side. This move has seen the indicator shrink the gap toward the zero line (0.00). Moreover, the MACD line’s (blue) divergence from the signal line adds credence to the bullish outlook.

BTC/USD four-hour chart

Precisely, Bitcoin trades slightly above $39,000 at writing. On the downside, the 50 Simple Moving Average (SMA) provides immediate support, helping bulls to focus on gains above $40,000.

Looking at the other side of the fence

The Relative Strength Index (RSI) has a bearish outlook as it points downward. This indicator shows that buyers lack the power to crack the key $40,000 resistance. Hence, exhaustion could wear down the bulls, giving way to another correction toward $36,000.

Bitcoin intraday levels

Spot rate: $39,286

Trend: Bearish biased

Volatility: Low

Support: $36,400 and $34,500

Resistance: $40,000 and $43,000

About Author

John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige