Bitcoin Looks Like It May Be Turning Around, Yet A Major Battle Lies Ahead

Bitcoin BTC/USD is trading higher Tuesday in a cryptocurrency market that is trading relatively flat. Bitcoin is approaching a key level that has previously held as both support and resistance. Crossing above this level may confirm the bullish reversal.

Bitcoin was up 0.08% at $38495.54 at the time of publication.

See Also: Bitcoin, Ethereum, Dogecoin On The Rise — Sorry To Play Debbie Downer But Here's Why These Analysts Refuse To Sound The All-Clear Alarm

Bitcoin Daily Chart Analysis

• Bitcoin is trading higher in a sideways channel and is nearing the $40,000 resistance level. This level has been a key area multiple times in Bitcoin’s history, and most recently has acted as resistance. If the apex cryptocurrency can move above this zone, the next level of strong resistance may be found near the $60,000 level, while support should appear near the $30,000 level.
• Bitcoin trades below both the 50-day moving average (green) and the 200-day moving average (blue). This shows the crypto is trading with bearish sentiment, and each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) has been heading higher for the past couple of weeks and sits at 40. This shows more buyers are entering the market, although selling pressure still outweighs buying pressure. If the RSI crosses the middle line, it may help confirm the bullish reversal.

What’s Next For Bitcoin?

Bitcoin is nearing the $40,000 level again, and this area will be the next test for the cryptocurrency. There will likely be many sellers at the $40,000 level if the BTC can reach this level once again.

Bullish traders are looking to see the crypto cross above the level and be able to consolidate for a period of time before possibly continuing the bullish trend. Bulls are also looking for sentiment to turn increasingly bullish as the price crosses above the moving averages.

Bearish traders are looking for the price to get rejected by the $40,000 level and begin to fall toward $30,000 once again.