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    KuCoin Weekly Technical Review: Bitcoin Trading Above $ 44,000 Level, What To Expect From BTC Next Week?

    At Bitcoin and the altcoin market are finally back on track with its overwhelming uptrend. With a break of the key resistance at $ 40,000, the BTC market is currently traded at about $ 44,000 there. The same applies to Ethereum and other altcoins. The downtrend price action of most altcoins is aggressively transitioning into an uptrend.

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    The last few weeks have been intense for bitcoin - in terms of buyers pushing the market higher. Of the three attempts to make a higher high than $'s 30,000 support, the bulls made a strong attempt to head higher on their third attempt. As retail traders expected the market to break below support levels, given the weakening momentum from the bulls, the short pressure led to an increase in the power of buyers to take the price higher.

    Technical analysis of BTC

    Just a week after August, BTC hit a three-month high of $45,355 on Sunday, surpassing the short-term psychological level of $45,000. This is a relief for most investors, especially after it came under pressure in early August, falling nearly 13% to a low of $37,481 on August 4, renewing fears of another prolonged bear run.

    Short-term investors in particular are in a buying mood. Tesla CEO Elon Musk, who has promised an eventual return of the Cryptocurrency at Tesla about two weeks ago is probably the main reason for this positive market sentiment. 

    Ahead of this week's inflation report, the current short-term momentum could be derailed or extended. В US Bureau of Labor Statistics is scheduled to release its July inflation report on August 11 The market consensus is that inflation will increase by 0.5%, pushing the CPI down from 13-year highs of 5.4% to 5.3%. 

    Looking at the 4-hour charts, a break above this Sunday's high of $45,355 would face near-term resistance at the following levels: 

    • R1 - 46 600 dollars
    • R2 - 47 400 dollars
    • R3 - 48 700 dollars

    If BTC takes a short-term correction, we expect support levels of:

    • S1 - $42,100
    • S2 - 41 100 dollars
    • S3 - $40,000
    6f1fff5d4860d4f7c953bbeb578c19a1738d792f8e0dbfcadd2fb84710390fce.png

    Bitcoins support levels based on Fib extensions – 4 -hourly price table | Source: BTC/USDT

    Although BTC remained particularly resilient in early August despite the 51% attack on Bitcoin Satoshi Vision (BSV), in the long term regulatory risks still represent a looming fear in the common market. Regulators in China, the EU and the US show no signs of easing on regulations.

    Looking at BTC's daily chart, BTC failed to successfully break the 200-day MA on Sunday. The current recovery from the low of $29,272 recorded on July 20 appears to be facing resistance around $45,000. A successful violation of the 200-day MA would be a solid confirmation of a longer-term bullish trend. In this case, we can expect the resistance level around $ 56,100.

    c5f35667f02cd715e4e709abf5543edcb46a0e32f1a5b3bc053d94857cf1df78.png

    Bitcoin support levels based on Fib extensions - Daily price chart | Source: BTC/USDT

    In the long term, BTC will face support levels of:

    • S1 - $39,200 
    • S2 - 35 100 dollars
    • S3 - $32,700

    A break below the 50-day MA is bound to push BTC further down towards $ 30,000-which remains our critical long-term support level.

    Conclusion

    The fact that bulls are back in business cannot be ignored. Furthermore, with the entire cryptocurrency market booming over the past two weeks, it's obvious that the bullishness is here to stay. As for the bears, we expected a big reaction from the psychological resistance levels of $40,000. But none of the bears' moves lowered the price above 10%, which seems odd from a price action perspective.

    Given the current price action, buyers ended the minute consolidation, having stepped up at any discount price. As a result, the market took $ 38,000 support and broke firmly through resistance. However, it is important to note that it goes against market principles of price action to continually shoot higher from support levels. Thus, based on the price action in the market, a short-term follow-through to the downside could begin before price rises to the $50,000 mark. Stay tuned and watch the blog on KuCoin for po - interesting and valuable educational content. All the best!

    Did you know that KuCoin offers premium TradingView charts to all its clients? With this, you can enhance your technical analysis and easily track the minute movements of the bitcoin market. 
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