- BTC/USD bulls bounce off $37500 to continue their impressive momentum.
- The $41500 key level has been a major barrier to the rise of the coin since the May 19 price plunge.
- We can expect the king coin to press higher to reach $47500 where further reactions will occur.
BTC/USD bulls bounce off $37500 to continue their impressive momentum. Unlike previous bullish rallies, the last rally from the 26th of June was cut short after the price had slumped just below the 50% Fib level back to the $31000 support. This occurred over 30 trading days. The market would reconfirm its bullish tendencies by springing up from that support zone with consecutive bullish candles that would go on to reach $41500.
Bitcoin Key Levels
Resistance Zones: $47500, $52000, $60000
Support Zones: $41500, $37500, $31000
The $41500 key level has been a major barrier to the rise of the coin since the May 19 price plunge. When the king coin reached this barrier on the 30th of July 2021, it knocked it down as in previous times. But Bitcoin, still full of bullish impetus, only pulled back to $37500, which happens to coincide with the 50% Fibonacci level. Market prices tend to continue in the same direction after a 50% Fib retracement and this is exactly what happens.
Bitcoin eventually gained enough momentum to forcefully thrust its way through the $41500 barrier. Furthermore, the price fell back to retest the zone before going higher. The Stochastic Oscillator shows that the market is still full of bullish vigor when it pulled back to the 50% Fib level. Despite the 12% drop in price, the Stochastic signal lines didn’t drop too far from the oversold region.
Bitcoin is currently trading at around $45895 level and remains entrenched in the oversold region on the 4-hour chart of the Stochastic Oscillator. Buyers retained their bullish momentum after breaking free of the $41500 key level and are now free to surge further upwards.
The Parabolic SAR (Stop and Reverse) has now outlined 3 dots below the 4-hour candles after it pulled back to bounce off the support zone.
We can expect the king coin to press higher to reach $47500 where further reactions will occur.
Also read: Bitcoin Price Prediction: BTC/USD Market Weakens at $40,000
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