Bitcoin Returns Above $40K; Faces Resistance at $45K-$50K

Bitcoin (BTC) is testing resistance near $40,000 after several breakout attempts over the past three months. The short-squeeze rally lost some momentum this week, although downside appears limited around the $34,000 to $36,000 support zone.

The next level of resistance is seen at the 200-day moving average near $45,000. A successful breakout would yield an initial upside target towards $50,000-$55,000.

Bitcoin was trading around $40,600 at press time and is up 6% over the past 24 hours.

The relative strength index (RSI) is declining from overbought levels, which could encourage some profit taking around resistance levels.
Bitcoin’s intermediate term trend is improving after holding support above $30,000 over the past three months.
A decisive move above the 200-day moving average would clear the downtrend since April, although strong overhead resistance could limit price rallies into next week.

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Bitcoin Returns Above $40K; Faces Resistance at $45K-$50K

Strong overhead resistance could limit price rallies into next week.

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