FX.co ★ Bitcoin remains supported but bulls need more signs of strength.

Bitcoin bulls are trying to establish a strong defensive base around $39,000-$40,000 and stay above $40,000. It is important for bulls to break above $42,000 as this is the most important short-term resistance.

Bitcoin has made a shallow pull back towards $37,000 confirming that this level is important short-term support. A move below $37,000 would be a sign of weakness. Bulls want to break above the $42,000 level because there we find the downward sloping resistance trend line from its all time highs and because the horizontal resistance from June highs. Until we see a break above $42,000, bulls need to be cautious as price will be vulnerable to a rejection from the trend line.