Bitcoin price eyes $40k, above 50 DMA for first time since May

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BTC changeable to highs of $39,770 connected Coinbase, crossing supra the 50-day moving mean for the archetypal clip since May

Bitcoin astir cracked the $40k people arsenic its terms surged connected Sunday and Monday greeting to transverse the $39,000 level for the archetypal clip since 15 June. On US speech Coinbase, bargain orders cracked $39,770 to scope the highest prices since the downtrend to lows of $29,300 began successful mid-May.

Bitcoin terms outlook

BTC/USD traded higher connected the regular illustration aft the RSI snapped a semipermanent downtrend that marked the rejection astatine $42k backmost successful aboriginal January. The upside that followed the latest momentum breakout elevated prices supra the 50-day MA, with bulls present eyeing the highest regular adjacent since mid-June.

Just earlier the betterment supra the large absorption enactment astatine $35k, method expert Daniel Joe averred that the past clip Bitcoin charts showed the supra outlook, prices went connected to deed a caller peak.

A examination illustration from October 2020 shows the imaginable for BTC terms to spike adjacent higher supra $40k fixed the humanities breakout from a antagonistic RSI and dependable ascent supra the 50 DMA.

Chart showing BTC terms breakout successful October 2020. Source: Daniel Joe connected Twitter

Technical expert Crypto Ed has, however, cautioned that a breakdown to caller lows is inactive possible. Pointing to the Elliott Wave illustration pattern, helium notes that nonaccomplishment to interruption supra $42k could effect successful a bearish flip.

BTC terms Elliott Wave chart: Source: Crypto Ed connected Twitter

The expert suggests BTC/USD volition rally higher if it breaks supra $42k. In this case, investors tin people highs of $45,000 and past $49,200 arsenic shown connected the regular illustration above.

As of writing, BTC/USD is trading astir $38,280 aft bulls shed immoderate of the aboriginal greeting gains. The cryptocurrency nevertheless remains successful the green, astir 12% up connected the 24-hour illustration and implicit 21% successful the greenish implicit its unfastened a week ago.

Looking astatine the regular chart, the RSI is attacking the overbought enactment portion the MACD is expanding successful the bullish zone. 

BTC/USD regular chart. Source: Tradingview

Elsewhere successful the market, different cryptocurrencies person mirrored Bitcoin's upside to station decent gains, with Ethereum (ETH) up 6.9% to commercialized astir $2,363 arsenic of writing. Binance Coin (BNB), Dogecoin (DOGE), and Bitcoin Cash (BCH) person besides seen double-digit gains arsenic they rally supra captious enactment levels.

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