Bitcoin faced resistance at $40,000 and pulled back a bit as trading calmed down after the recent volatility. Ethereum is mostly flat near $2,600, while Dogecoin is trading near $0.35.
Elon Musk has recently stated that he met with North American Bitcoin miners to discuss the use of renewable energy in mining. The meeting was organized by MicroStrategy CEO Michael Saylor.
Bitcoin found itself under pressure after Tesla announced that it would not accept the cryptocurrency as payment for its cars due to environmental concerns, so Musk’s willingness to work with miners on renewable energy served as a bullish catalyst for Bitcoin and other cryptocurrencies.
However, this catalyst for not sufficient enough to push Bitcoin above the $40,000 level.
Technical Analysis
Bitcoin has recently made another attempt to settle above the key resistance at the $40,000 level but failed to develop sufficient upside momentum.
This is an important moment for Bitcoin as the successful test of the resistance at $40,000 will attract more speculative traders. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.
If Bitcoin manages to get above the $40,000 level, it will quickly get to the test of the next resistance which is located at $42,000. A move above this level will push Bitcoin towards the resistance at $44,000.
The 20 EMA is in the nearby so I’d expect that this resistance level should be stronger than the previous one.
A successful test of the resistance at $44,000 will open the way to the test of the next resistance level at $46,000. It should be noted that Bitcoin may quickly get from $40,000 to $46,000 if it manages to gain additional momentum.
On the support side, the nearest support level for Bitcoin is located at $37,000. A move below this level will push Bitcoin towards the next support at $35,000.
In case Bitcoin declines below the support at $35,000, it will move towards the support at $32,000.
A successful test of the support at $32,000 will open the way to the test of the next support which is located at the recent lows at $30,000.