October 2, 2022

Bitcoin Reclaims $40K: New ATH Soon or Deeper Correction Incoming? (BTC Price Analysis)

2 min read

The bulls are back in the area with a solid 15% daily cost rise, as BTC recovers the $40K cost area. Just two days earlier, after reaching $42K ATH, the main cryptocurrency come by a steep 30% to discover support upon the $30K level.

The correction was even quicker than the drop as BTC had acquired $5,000 just the other day and closed the everyday candle light at $37,415 (Bitstamp). Today, Bitcoin’s price continued even greater, recording $40,122 as the day-to-day high since composing these lines.

Bitcoin has actually started a new ascending rate channel on the following 4-hour chart as it trades around the upper border. In addition, it has actually met resistance at a bearish.786 Fib Retracement around $39,720, together with $40 K’s mental level. Following the 2-day $10,000 rally, it will be interesting to see whether BTC will continue to a brand-new ATH beyond $42K or produce a lower low on its method down.

BTC Price Support and Resistance Levels to Watch

Key Support Levels: $38,000, $37,150, $36,000, $34,000, $32,500.

Key Resistance Levels: $39,720-$40,000, $40,775, $41,000, $41,835, $42,000.

Moving forward, the first level of resistance lies at $40,000. This is followed by $40,775 (bearish.886 Fib Retracement), $41,000, $41,835 (1.414 Fib Extension), and the ATH rate at $42,000. In the above-mentioned cost are we can also see high pieces of supply of leftover sell commands of traders not selling amid the current drop.

In case Bitcoin breaks the current ATH at $42K, then the next resistance levels are expected at $43,445 and $45,000.

Alternatively, in case the $40K top from earlier today would rely on be a regional top, the very first level of support lies at $38,000. This is followed by $37,150, $36,000, and $34,000. Additional assistance lies at the rising trend line, and $32,500 (.382 Fib).

Following the turnaround, the daily RSI recently bounced from the mid-line to indicate that the bullish momentum is increasing as soon as again. The drop towards the mid-line offered an opportunity for the momentum to settle from extremely overbought levels prior to a possible retest of the ATH zone.

Bitstamp BTC/USD Daily Chart

BTC/USD Daily Chart. Source: TradingView Bitstamp BTC/USD 4-Hour Chart BTC/USD 4-Hour Chart. Source: TradingView