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Bitcoin Price Prediction: BTC/USD Retraces Above $38,500

At the time of writing, BTC/USD is teetering at $40,258. There have been instances when BTC has exchanged hands above $42,000 sustaining the bullish price action is an uphill task. However, the path of least resistance is still ranging as the daily chart shows that the king coin remains below the upper boundary of the channel.

Bitcoin Price Prediction: Would Bitcoin Break Above $40,000?
If pennant support gives way on the daily chart, even $38,000 may not be held as support. Therefore, after a pit stop at the support level of $38,342 within the channel, the Bitcoin price is likely to fall if the 9-day moving average drops below the 21-day moving average. Meanwhile, the technical indicator Relative Strength Index (14), BTC/USD is not performed with downward movements which means there are no rooms for the bears to explore.

On the downside, recovery might not be easy as the support needs to be sorted above the $41,000 level. Therefore, any bullish movement above the upper boundary of the channel is likely to locate the resistance levels of $44,000, $46,000, and $48,000. In other words, if the market falls sharply again and drops below the 9-day MA, it may locate the critical supports at $36,000, $34,000, and $32,000 as the Relative Strength Index (14) is likely to cross below the overbought region.

Checking the 4-hour chart for the coin, BTC/USD is trending in an upward channel formation. During the European session today, the Bitcoin (BTC) is seen trading at the upside touching the daily high of $41,642 before dropping to where it is currently changing hands at $40,857. On the downside, traders can only be sure of one healthy support at $39,000. Further support could be located around $38,000 and below.

However, the technical indicator Relative Strength Index (14) is moving towards the oversold region, now moving above the 60-level. However, the Bitcoin price is rising above the 9-day and 21-day moving averages; further bullish movements could push the price towards the upper boundary of the channel to reach the potential resistance at $43,000 and above.

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