Bitcoin Enjoys Strong Rebound
Bitcoin has recently made an attempt to settle below the key support level at $30,000 but lost momentum and rebounded closer to the resistance at $35,000.
This is a very positive development for crypto bulls as Bitcoin’s move below $30,000 would have had a serious negative impact on the crypto market.
Not surprisingly, other cryptocurrencies are gaining ground. Ethereum is currently trying to settle back above the $2,000 level. Dogecoin is testing the resistance at $0.2150. XRP enjoys a very strong rebound and is trying to move back above $0.65.
Bitcoin Dominance, which shows Bitcoin’s market capitalization as a percentage of total crypto market capitalization, has pulled back a bit from recent highs near 48%. However, its trend remains bullish, and it looks that Bitcoin has a decent chance to increase its market share in case it manages to get back above the resistance at $35,000 and move towards the $40,000 level.
Bitcoin managed to get back above the resistance at $32,000 and is trying to get to the test of the next resistance level which is located at $35,000. In case Bitcoin manages to settle above the resistance at $35,000, it will head towards the resistance at the 20 EMA at $36,300.
A successful test of the resistance at the 20 EMA will open the way to the test of the next resistance level at $38,000. If Bitcoin gets above this level, it will head towards the key resistance level at $40,000. This resistance level has already been tested many times and proved its strength. In addition, the 50 EMA is located at $40,500, so Bitcoin will likely face strong resistance in the $40,000 – $40,500 area.
On the support side, Bitcoin needs to settle back below $32,000 to have a chance to get to another test of the key support level at $30,000. A move below $30,000 will push Bitcoin towards the recent lows at $28,800. A successful test of this level will signal that Bitcoin is ready to continue its downside move.
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This article was originally posted on FX Empire