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BTC growth weakens and price faces strong key resistance

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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 / USD 4H.  Source: TradingView
BTC / USD 4H. Source: TradingView

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.

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Disclaimer: This article is for information purposes only and should not be construed as investment advice.

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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