The $ 42K resistance is a big challenge for Bitcoin

2 ส.ค. 2021

Last week was one of the best in recent months for Bitcoin, but confirming the bullish trend is not as easy as it seems.

Although we indicated in the introduction that the bulls are having a hard time at the moment, it does not change the fact that we are witnessing a number of important news and events that can keep BTC in a bullish mood.

Among the most important are the following: statement from CEO of Swiss Vontobel, which manages the AUM of $ 300B, that wealthy clients like to invest in cryptocurrencies, the launch of the first publicly available US Bitcoin mutual fund, but also information that PayPal's crypto wallet is completed.

Today is also a significant day, as a new law enters into force in Germany, which will allow institutional funds to invest up to 20% of their assets in cryptocurrencies.

So what can we expect in the coming days on the BTC market?

Bitcoin has currently run into a long-running and problematic resistance area at $ 42K- $ 43K where, as you can see, the bears have successfully stopped BTC and sent it back down.

On the one hand, the fact that we are again under $ 40K may cause some doubts but in terms of technical analysis it is a necessary cooling of the market, because most indicators such as RSI has been already overbought.

From the point of view of the overall analysis and taking into account all factors, it is therefore possible that we will see a short-term decline, but not more than $ 2K from the current price. Subsequently, when Bitcoin calms down, it is highly likely that Bitcoin will definitely beat $ 40K and also maintain this price level, which could be another impetus for long-term growth.

Important price areas:

Resistance at $ 42K - $ 43K
Resistance at $ 50K - $ 48K
Key support in the area of $ 28K - $ 30K
Next support at $ 22.5K

Full Analysis: Crypto News - CCnews24