Bitcoin (CRYPTO: BTC) is trading up Monday in a cryptocurrency market that is trading slightly higher overall. Bitcoin has just crossed above a critical level and could be reversing on the long-term trend.
Bitcoin was up 5.67% at $44,054.70 Monday afternoon at publication.
See Related: Bitcoin Looks Like It May Be Turning Around, Yet A Major Battle Lies Ahead
Bitcoin Daily Chart Analysis
- Bitcoin is trading higher in a sideways channel and was able to cross above the $40,000 resistance level. This level has been a key one multiple times in Bitcoin’s history and most recently was showing as resistance near it. The next level of strong resistance may be found near the $60,000 level while support may now be found near the $40,000 level.
- The crypto crossed above the 50-day moving average (green) Monday, but trades below the 200-day moving average (blue). This shows the crypto is trading in a period of consolidation. The 50-day moving average may hold as an area of support while the 200-day moving average may act as resistance.
- The Relative Strength Index (RSI) has been ripping higher Monday and now sits at 63. This shows a large number of buyers have pushed into the crypto. There is now more buying pressure than there is selling pressure.
What’s Next For Bitcoin?
Bitcoin is breaking a key resistance level and looks to be reversing. The bullish trend may be confirmed if the crypto can continue to form higher lows and hold above the $40,000 level. Bulls also are looking for the RSI to hold above the middle line and for the price to cross above the 200-day moving average. Bearish traders want to see the price fall back below the $40,000 level and begin to form lower highs. Bears also want to see the RSI fall back below the middle line.