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Bitcoin is close to the trendline – what can come next?

Bitcoin is currently below one of the crucial trendlines, which has been pushing it down for quite some time now. The price has already tested it few times, but never went above. Can it come now?

Which trendline are we talking about?

Just to be clear, here is a daily chart of the above-mentioned trendline that most traders and investors are currently following on Bitcoin.

TradingView Chart

Crucial trendline for Bitcoin, Source: Author´s analysis, tradingview.com

After its price dumped down, Bitcoin has been only moving down alongside this trendline and MA21. There has not even been any kind of potential trend reversal yet. Will that change?

Can a shorter timeframe tell us more?

In here we can even include a resistance level around 39 139 USD. Looking at all the hurdles that Bitcoin has ahead itself, we can see that it is not going to be easy for the biggest cryptocurrency:

  1. Main trendline from the daily chart.
  2. MA21 on the daily as well as 4H chart.
  3. Resistance level of 39 139 USD.
  4. Zone resistance levels of 39 500  – 41 300 USD.

That means that even if we break the trendline, we would immediately be in the strong resistance zone. I personally believe that the break of the trendline is important, but I do not think that it will necessarily mean that we are going straight up. Yet, it can be first sign that we are at least getting some traction.

40 000 USD as a strong resistance

There is also a psychological strong resistance in the form of 40 000 USD. If we look back at the price action for the past year, we can see that this level has been one of the major zones of bounces and is very important. Thus, I will be much more bullish if we can break and stay above this level.

TradingView Chart

Bitcoin 40 000 USD resistance, Source: Author´s analysis, tradingview.com

Jakub is a crypto trader and founder of Trader 2.0 project, which helps hundreds of traders from central Europe to understand cryptocurrency trading and its challenges. Jakub not o...

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