Bitcoin Price Analysis: BTC Breaks Resistance, Eyes $40,000 Level

The price of Bitcoin continues its day at $34,771 and there is little time left until the daily close. The outlook is currently positive. NASDAQ closed the day with a loss of more than 2%, but BTC showed positive divergence in the process. This indicates that the price may not be affected by the strong winds that are worrying in the macro front. However, it is still too early to rejoice because the PCE data is waiting for us.

Bitcoin (BTC) Chart Analysis

Bitcoin easily broke out of the challenging resistance zone of $31,000 to $32,400 on October 23. The rapid breakout that devastated short sellers wiped out the entire trading capital of many popular traders. Market participants entered into a bullish expectation because they were waiting for the approval of the Bitcoin spot exchange-traded fund (ETF) as soon as possible. Bloomberg ETF analyst Eric Balchunas wrote on October 23 that the listing of BlackRock’s spot Bitcoin ETF on the Depository Trust & Clearing Corporation (DTCC) indicates that the ETF’s launch process is nearing its end.

However, a spokesperson for the DTCC said that this does not mean a definite approval and that iShares BTC ETF has been listed since August. As for the price, the breach of $32,400 indicates that the trend has turned bullish again. Although the RSI remains in the overbought zone, it is acceptable and it may be too early to expect a correction in the early stages of significant rallies.

In a possible price correction, it is expected that the support levels of $32,400 and $31,000 will be maintained. If it bounces off the support or continues its upward movement, BTC may surpass $40,000. However, losing $31,000 would indicate a bull trap.

Ethereum (ETH) Analysis

On October 23, breaking the $1,746 level gave hope for a trend reversal. Although bulls aimed for higher levels on October 24, the long wick on the candlestick indicates that selling pressure is still dominant. This also reflects the tendency of daily traders to take profits in altcoins. Ethereum, in terms of market capitalization, cannot easily experience absurd surges like SOL.

An important level to watch on the downside is $1,746. If the price bounces off this zone, it can target $1,855 and $2,000. However, we may see a drop to $1,648 in case of a close below the support.

Disclaimer: The information provided in this article does not constitute investment advice. Investors should be aware of the high volatility and associated risks of cryptocurrencies and should conduct their own research before making transactions.

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