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Altcoins also started to show a slight increase of 5% – 7%. Over the past 4 days, the market sentiment has changed dramatically, which led to the growth of the entire crypto industry.
Let’s take a look at the Bitcoin chart and try to understand if the first cryptocurrency will go higher or if this is a false bounce:
For the first time in 2 weeks, the chart returned to the $40,000 level. This is the kind of development we expected and our forecast was fully justified. In just a week, the chart has grown by a third and this is a very strong result.
All this happened as a result of a lot of positive news, including from Elon Musk. The head of Tesla said that his company sold only 10% of Bitcoins and plans to accept Bitcoin as payment in the future. Once again, this triggered a sharp rise in Bitcoin.
The $40,000 level is the main resistance at the moment. This is where a large number of buy and sell orders are located. It is now clearly seen that there was accumulation in the range of $30,000 – $40,000. The logical continuation of this setup is the upward growth of the asset.
Indicators also point to continued growth. The RSI continues to move upward and has been rising over the past month. It looks like it will continue in the future. MACD fell heavily in May and was at the bottom for a long time, but after that, it turned around and shows steady growth.
Many signs point to further growth, but it is too early to speak of a final reversal. Everything will be decided at the level of $40,000. If buyers are able to gain a foothold above this level, then this will be a good signal for an increase in prices. If Bitcoin breaks through $42,000, it will trigger massive liquidations of short traders, which could quickly push the price into the $45,000 – $48,000 range.
But if buyers cannot overcome and gain a foothold above $40,000, this will be a very bad sign for Bitcoin. In this case, the first cryptocurrency may fall not only to $30,000 but even lower.
Based on this, the best option at the moment would be to wait for a couple of days. We think that this will be enough in order to finally be convinced of the future prospects of Bitcoin. Once again, we note that everything will be decided depending on how the chart behaves at the $40,000 level. Meanwhile, you have a good chance to predict the next price movement of altcoins with our AI Price Predictions feature.