Bitcoin Breaks the $40,000 Resistance !!!

News • 2021/07/30 • by

Bitcoin / US Dollar

The bullish predictions became a reality, and the price moved above the $40,000 resistance level, bringing joy and happiness among investing community. The new bullish move brings the market status under new considerations as more scenarios come to the table.

The bullish scenario, in this case, depicts another rally up to $47,000 level, which was the entry-level for Tesla’s purchase order. The move from Tesla marked the core phase of the bull market as more and more investors were hyped by Tesla’s and Elon Musk’s decision to place more than $1.5 billion in Bitcoin and keep them in Tesla’s balance sheet.

Reaching the $47,000 level will bring the market in an “equilibrium” status as the Tesla effect on the market development will be vanished and the Bitcoin market could start a new cycle of bull runs towards the next bullish goal.

On the opposite scenario, the bears might bring more pressure in the $40,000 as a support point and try to break it in the backward direction. This move will bring the price back in the compression zone between $32,000 and $40,000, creating another compression cycle with extended needs for events that will mark a change of direction.

We expect the bullish scenario to dominate the market in the next few days, and Bitcoin will bring stronger results and returns for holders. Since the last period, the trading volumes have increased while the moving averages have continued to get positioned at bullish formation.

In the short-term diagram, we can observe that the compression trend broke out on the bullish side, breaking the $40,000 barrier. This move was expected from many analysts as it appeared as a common compression outcome at different markets.

Indicators

MACD index continues to add more positive momentum in the market development. In contrast, the RSI index broke value = 70, indicating that the market has overperformed over the last days and some correction might occur in the next period.

Ethereum / US Dollar

The bull run is also evident in the Ethereum market as the price climbed even more at $2,450. This solid, ambitious move brings Ethereum one step closer to the first bullish checkpoint, which stands at $2,500.

Breaking the $2,500 point could become the first established move for a new bull run that could bring the market to new all-time high levels. The bullish scenario will become a reality if the overall market momentum elevates through the next days and establish better positioning over the next period.

The bearish scenario will indicate a turn of events in the price formation process to bring the price around $2,000. This change in direction will kick off another stable round of action with less activity in the charts and more volatility in the intra-day sessions.

We expect that the $2,500 resistance level will break soon, and a new cycle will start for Ethereum as its main goal should be to get more independent actions from the market and try to get uptrends from its powers.

The trading volumes were sustained on the spiky conditions, while the moving averages hold a bullish position.

Indicators

MACD index continues to rise in the chart, bringing more positivity in the price action while the RSI index has moved around value = 65, indicating that the uptrend has not yet reached its peak for the current period.

Ripple / US Dollar

Ripple made another small progressive jump in the chart, landing at $0.75. As mentioned in previous Price Analysis articles, Ripple has been in the crucial zone between $0.60 and $1.00, which remains mostly undiscovered in terms of price actions.

This lack of knowledge regarding potential moves in the market has brought analysts to express different opinions about Ripple’s future in the short-term period. The only sure thing is that the $1.00 point remains the goal for establishing another winning, bullish market.

This goal seems to be approachable under the current situation, but there is a need for a huge boost derived from a bullish story that could erupt in the news headlines.

On the other hand, the bears are looking for a return below $0.60, a signal that will show the market’s weaknesses and put more pressure on the price formation, leading the market to lower prices even at the $0.25 - $0.30 zone. According to market dynamics transforming the sector, we expect that the price will continue to progress slowly in the bullish path.
The trading volumes have spiked during the last few days while the moving averages have continued their bullish positioning.

Indicators

MACD index moves in the “green” area, bringing better results in the price formation. The RSI index moved to value = 65, indicating that there is more to be done in the uptrend move from this point and on.

Litecoin / US Dollar

The Litecoin market is not famous for exaggerating moves that could change the market formation for a long time and deliver impressive results. Today a small step took place as the price rises above $140, establishing a clear path on the bullish road.

In Litecoin’s case, the market has two marks on the bullish side, while the market is still in the compression zone. The first stand on the $175, which was the average point of the current compression zone, while the second mark stands around $200, which is the upper level of the compression zone. The two marks will be the points that will indicate a full pass on the bullish trend with a faster and more efficient adaptation of the market dynamics.

The trading volumes have continued to stay higher than in the previous period, while the moving averages are now moving towards a bullish position.

Indicators

MACD index moves faster in the positive area, indicating that the market is absorbing more positive momentum than before. In contrast, the RSI index has moved around value = 60, showing that the market will continue towards a bullish path for the next period.

Bitcoin Cash / US Dollar

The slow adaptation of the market dynamics is also evident in the Bitcoin Cash market, as the price started to move in the first checkpoint around $550. The price has landed at $540, showing that Bitcoin Cash is trying to move faster this time and catch the established trend in the market.

The expectations are low for the current situation in the Bitcoin Cash market as the price can’t absorb the positive flows from the rest of the market and delivers poorer results than expected in the final price formation process.
We expect the price to move slowly towards the $550 point, but it would not be easy to catch the $700 point, which remains the main point for catching the bullish slide.

Since the last period, the trading volumes have made some progress, while the moving averages are moving on bullish formation from this point and on.

Indicators

MACD index has moved on the positive area and continues to deliver more momentum in the price formation. In contrast, the RSI index moved to value = 60, indicating that the market will continue to grow for now.

Correlations

Bitcoin / Ethereum = 0.97 (+ 0.02), Bitcoin / Ripple = 0.93 (+ 0.07), Bitcoin / Litecoin = 0.90 (+ 0.06), Bitcoin / Bitcoin Cash = 0.94 (+ 0.04)
At the start of the weekend, the new uptrend move from the Bitcoin market delivers a more positive spirit to other cryptocurrencies. The market correlations rose again, bringing every crypto’s correlation above value = 0.90, showing that the entire crypto market has moved in the same direction. The same structure in the market development can bring the optimal results for the price actions as more investment flows are likely to enter the market and build more sustainable positions over the long-term period. We expect a solid action in the next period from the market on the way above.