FX.co ★ Trading Signal for BITCOIN, for August 06 - 09, 2021: Buy above $39,062

Bitcoin looks determined to exceed the key level $45,000 and reach the psychological resistance zone of $50,000. The consolidation that is in progress these days is a sign of accumulating more buyers for a new bullish wave.

On the other hand, the bullish strength of BTC remains limited to the resistance of 7/8 of murray. This is a key level of a technical reversal. If BTC price remains below this level, a bearish movement may occur in the next days.

There are other traders and analysts who believe that BTC could fall more due to the strength of the US dollar. Besides, the FOMC could cut its purchase of bonds, that would give more bullish strength to the dollar and could keep Bitcoin under downward pressure.

For Bitcoin to exceed its high of 66,000, we must expect a consolidation above $45,000. At this point, the EMA of 200 is located in daily charts. While BTC is trading below this level, we believe that it will continue to be under downward pressure.

The $45,000 level is the key for short-term traders. They could grasp a good opportunity to sell below this level since there is the 200 EMA and the +1/8 level of murray. Therefore, a pullback towards this level creates a good selling opportunity.

In the short term, observing the chart, we could continue buying BTC as long as it remains above $37,500. There is strong support, the upward target is the resistance zone of $42,187 and $43,750.

Support and Resistance Levels for August 06 - 09, 2021

Resistance (3) 44,228

Resistance (2) 43,884

Resistance (1) 42,332

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Support (1) 38,210

Support (2) 36,219

Support (3) 35,140