Bitcoin makes a sharp upturn above $30,000 after a gruesome session on Tuesday.
Technical levels flip bullish as investors return with a bang.
Bitcoin traded monthly lows toward $28,000 on Tuesday, leaving most investors disappointed. However, the flash drop under $30,000 may have allowed new investors to take advantage of the lower entry prices.
At the time of writing, the bellwether cryptocurrency has recoiled above $30,000 and is seeking support above $34,000. The upsurge appears to be supported by the short-term technical levels. Therefore, the slightest resistance path may be upward based on the four-hour timeframe.
Bitcoin price upsurge bound for $40,000
At the time of writing, BTC is exchanging hands slightly above $40,000. The upswing from $28,000 is supported by the Relative Strength Index (RSI) on the 12-hour chart. Note that as the RSI recovers from levels close to the oversold, bulls gain momentum. Higher support would ensure that stability returns to the market.
BTC/USD 12-hour chart
BTC/USD price chart by Tradingview
The recovery toward $40,000 awaits confirmation from the Moving Average Convergence Divergence (MACD) indicator. Following the drop recent drop, this technical tool slumped into the negative region and triggered massive sell orders. However, with recovery underway, traders should watch out for the MACD to confirm the uptrend’s validity.
Realize that a buy signal will come into the picture as soon as the MACD line crosses above the signal line. Moreover, the MACD’s crossing above the signal line is bound to cement the bulls’ presence in the market.
On the upside, Bitcoin must break above the key hurdle of $36,000, highlighted by the 50 Simple Moving Average (SMA) on the 12-hour chart to secure the uplift toward $40,000.
On the downside, holding above $34,000 is key to ensuring that overhead pressure is mitigated. Besides, losses back to $30,000 will be avoided.
Bitcoin price intraday levels
Spot rate: $33,937
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