- Bitcoin price settles above crucial support at $34,000, highlighted by the 50 SMA.
All the short-term technical levels have aligned for a massive upswing toward $40,000.
Bitcoin price closed the weekend session in the green, trading above $34,000. The trading last week was mainly drab and characterized by a considerable dip from weekly highs above $35,000 to lows under $33,000.
As the new week takes off, the bellwether cryptocurrency is back to trading above $34,000. Here, the 50 Simple Moving Average (SMA) and the 100 SMA provide the much-needed support.
Bitcoin price begins restarts the journey to $40,000
A four-hour close above $34,000 will validate the next move, perhaps the crucial hurdle at $35,000 as shown by the 200 SMA. As Bitcoin takes down consecutive barriers, investors gain confidence in the uptrend. Hence. The odds for Bitcoin trading above $40,000 continue to soar.
The Moving Average Convergence Divergence (MACD) indicator is a technical tool used to track the trend of an asset and calculate its momentum. A consistent rise from the negative territory to the area above the mean line (0.00) adds credence to the bullish outlook.
Moreover, the MACD allows sends out buy or sell signals, allowing investors to back the downtrend or the uptrend. At the time of writing, Bitcoin's least resistance path is upward. This optimistic outlook has been reinforced by the 12-day Exponential Moving Average (EMA) crossing above the 26-day EMA).
On the upside, a break above $35,000 (the 200 SMA) will emphasize the growing bullish grip on the price.
It is worth mentioning that the Relative Strength Index (RSI) has lifted above the midline and heading toward the overbought region as a show of bulls flexing their muscles for renewed action this week. Realize that the RSI follows the trend of an asset and shows how strong it is. A strong bullish trend like Bitcoin's ongoing uptick tends to call more buyers into the market, thereby intensifying the tailwind for gains toward $40,000.
Bitcoin intraday levels
Spot rate: $34,420
Trend: Bullish
Volatility: Growing
Support: $34,000 and $32,000
Resistance: $35,000 and $36,000
