Can Bitcoin Break Above the Crucial Resistance Level $40,000?


Bitcoin has become volatile and still residing inside the range of $30,000 to $42,000 price area. Can Bitcoin break above the crucial resistance level $40,000? What are the charts and technical indicators are saying? Read on to find further insights into today’s BTC/USD Technical Analysis.

June 3, 2021, | AtoZ Markets – Bitcoin price climbed today morning during the Asian session against the U.S. Dollar. After breaking below $42,000 to $40,000 support level, the bears pushed the price downside quite impulsively and hit January 2021’s low, which is around $32,000 to $30,000 price area. Bitcoin is currently trading around $38,650 area and trying to recover higher. As per the current price action context, the price may face strong resistance again around $40,000 to $42,000 area in the coming days.

Bitcoin May Break Above as the Bulls Are Optimistic

Bitcoin is currently residing near $38,650 area and trying to climb upside. However, the price also broke over the Kumo Cloud on the intraday chart.

Bitcoin Break Above

Image: BTC 4 Hour Chart

According to the 4-hour chart, Bitcoin may break above as the price is trying to climb further upward. As per the current price action, the price may recover towards $40,000 to $42,000 resistance area. So, if the price can break above $40,000 to $42,000 resistance area with an impulsive bullish candle, the bulls may sustain the bullish pressure towards $45,000 to $46,000 area in the coming days. On the contrary, if the price rejects $42,000 to $40,000 area with an impulsive bearish candle close, the bears may regain momentum and push the price downside towards $32,000 to $30,000 area again in the process.

In addition, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may carry the price as strong support. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the days ahead. Moreover, the price also strikes over the Kumo Cloud, which indicates that the current bullish momentum is quite strong.

BTC May Continue Further Upward

According to the daily chart, Bitcoin breaks above $38,000 area and trying to recover higher. As per the current scenario, if the price surges further upside and breaks above $40,000 to $42,000 resistance area, the bulls may continue the bullish pressure towards $45,000 to $46,000 area as a first target. The second target will be $50,000 to $52,000 area if the price can break above $45,000 to $46,000 area in the coming days. Alternatively, if the price rejects $42,000 to $40,000 resistance area with an impulsive daily bearish candle, the bears may push the price down towards $32,000 to $30,000 area in the days ahead.

Bitcoin May Break Above

Image: BTC Daily Chart

Furthermore, the dynamic level of 20 EMA is currently residing above the price. So, it may work as strong resistance to push the price down. However, the bulls may regain momentum if the price can break above the dynamic level in the process. Also, the MACD lines are currently residing below the 0.00 level and had a bullish crossover. It indicates that the bulls may continue further higher in the coming days.

To conclude, as long as the price residing below the dynamic level of 20 EMA, the bias will remain bearish. An impulsive daily close is needed to identify the definite momentum in the days ahead. 

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