Bitcoin Revs Up To Resistance: Could It Be Ready To Break Out This Time?

Bitcoin BTC/USD has seen a run higher the last week or so and looks to have moved up to resistance Wednesday.

Bitcoin still sits at the highest market cap cryptocurrency and continues to be the dominant force in the crypto market.

See Also: Bitcoin Looks To Find Support Above $40,000 Mark Again As It Extends Gains For 8th Straight Day

Bitcoin Daily Chart Analysis

• Bitcoin continues to trade in a channel and shot up to resistance throughout the past couple of weeks.
• Bitcoin is trading below above the 50-day moving average (green) but below the 200-day moving average (blue), indicating a period of consolidation is likely happening.
• The 50-day moving average may act as resistance, while the 200-day moving average may hold as support.

Key Bitcoin Levels To Watch

• Bitcoin looks to have broken away from a head and shoulders pattern, and is attempting to break out of a channel.
• The $40,000 level has held as resistance previously and acted as resistance for both shoulders in the head and shoulders pattern. The $30,000 level is a potential area of support as this area previously acted as support.
• The Relative Strength Index (RSI) made a large leap and now sits at 69 right near the overbought border. If the RSI and price both continue to move up, the crypto could see a breakout.

What’s Next For Bitcoin?

Bullish traders would like to see Bitcoin break above the $40,000 level and be able to consolidate above the area. Bulls want to see consolidation above the area to show that Bitocin could be ready for its next leg up.

Bearish traders would like to see Bitcoin get rejected at the $40,000 level and fall lower. Eventually, bears would like to see Bitcoin fall to the $30,000 level before breaking below. Bears want to see the RSI fall lower and for Bitcoin to cross below the moving averages to help turn sentiment bearish.