In the American pre-market on Friday, Bitcoin is falling towards the psychological level of 40,000, that is around 5/8 of murray located at 40,625. That level is the key. If the price manages to bounce and consolidates above this zone, it will be a good opportunity to buy with targets at 43,750 and 45,500.
Bitcoin has been under downward pressure since September 7. The price is consolidating below the 200 EMA which means that the bearish force is prevailing. Since September 20, the price has tried three times to break the psychological level of 40,000, but has proved to be very strong and every time it bounced back.
Without a doubt, if BTC fails to break down and consolidate below 5/8 of murray at 40,625, this will be a signal that large investors are waiting for to buy back BTC. So, we can take advantage of buying above this level with targets at 45,500 that is the 200 EMA and the top of the bearish channel.
The 7/8 murray resistance level is being supported by the 200 EMA and the upper line of the bearish channel, which proves to be strong resistance for BTC. Only a sharp break above 47,000 will be a signal that the market is resuming its uptrend and could rise to the level of 53,125 where there is the extreme resistance of +1/8 of murray.
We could define the range to be able to trade BTC in the coming days. The key is to sell below 45,500 and buy only if it consolidates above 40,625. The eagle indicator is showing a sign of an imminent technical rebound in the next few hours.
Support and Resistance Levels for September 24 - 27, 2021
Resistance (3) 43,750
Resistance (2) 42,199
Resistance (1) 41,447
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Support (1) 40,625
Support (2) 38,918
Support (3) 37,500
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The material has been provided by InstaForex Company - www.instaforex.com