Bitcoin (BTC/USD) Price Action:
- Bitcoin[1] bounce back from $40,000
- USD[2] weakness and institutional interest have supported this week’s crypto rebound
- BTC[3]/USD[4] remains supported by key technical indicators
Bitcoin[5] (BTC/USD) and other major cryptocurrencies[6] re-appeared in the headlines this week as a combination of crowd psychology[7] and speculation briefly drove the price of BTC/USD to the June high before retreating back below the critical level of resistance, formed by the key psychological price of $40,000.
As US earning season continued to focus on the performance of large tech stocks, crypto influencers Cathie Wood of ARK invest, Tesla CEO Elon Musk and Twitter CEO Jack Dorsey [8] participated in the ‘B Word’ conference panel discussion that took place last weekend, maintaining a bullish narrative for the crypto sphere.
Elon Musk Tweets: The Impact of Social Media on Markets[9]
Although Bitcoin prices enjoyed double-digit gains at the start of the week, Amazon’s denial of allegations that the group would be accepting Bitcoin as a payment method by the end of the year hindered the ability for bulls to maintain favor above $40k.
Bitcoin (BTC/USD) Price Action
After opening above trendline resistance at the start of the week, Bitcoin prices pushed through $40,000, rallying into a wall of resistance just below $41,000. After retreating back to $39,000, bulls and bears continued to fight over dominance as price action[10] temporarily stalled between the 8 and 34-period Exponential Moving Averages (EMA)[11].
Bitcoin (BTC/USD) Daily Chart
Source: TradingView, Chart by Tammy Da Costa[12]
The below 4-hour chart further illustrates the narrow range of recent price action around the $39,000 mark. With the recent formation of shorter
