BTC has stagnated at about $ 40,000 on the last day. Meanwhile, the indicators point to a declining strength of the trend. BTC namely facing strong resistance and still failed to overcome it two-month sideway structure. Will he be able to do it now or is a corrective leg waiting for us?
The price of the main cryptocurrency faces resistance at the level of $ 41,000. This resistance represents the upper limit of the sideway structure, which has still been intact for more than two months. Volumes are also declining and RSI indicates a negative divergence in overbought.
Therefore, it is appropriate to consider by creating a local maximum just in the zone on the mentioned resistance. However, even if we beat $ 41,000, then the price faces further resistance, which consists of a maximum at ATH. This area is currently around $ 42,500. Before we overcome these values probably the price will record a short-term declining leg.
BTC weakens in growth
On the other hand, the price may still rise slightly before we go for a correction. As support we will monitor the indicator MA21 at period 4H. It is between MA21 and $ 41,000 that I expect volatility. If MA21 eventually fails, then the correction target is at the point of control level of $ 36,850.
However, the last minimum, which was created on 27 July, tested the previous long-term maximum at the point of control level and was thus a strong bullish indicator, as the mentioned maximum was part of the long-term 123 bottom formation pattern.
Disclaimer: This article is for information purposes only and should not be construed as investment advice.
