At $40,000, Bitcoin has re-entered the key resistance level.
The price of bitcoin is rising at the start of the week.
After Elon Musk indicated that Tesla would allow customers to use Bitcoin as payment for the company's cars after Bitcoin miners' use of clean energy reaches 50%, Bitcoin gained more upside momentum and moved closer to the critical resistance level of $40,000.\
Musk also said that Tesla sold around 10% of its Bitcoin holdings, which acted as a bullish catalyst because some traders were concerned that Tesla was reducing its Bitcoin holdings.
Ethereum, the second-largest cryptocurrency, is also rising in value. It is currently attempting to settle over the $2,500 mark. Dogecoin is largely unchanged, and it appears that Bitcoin's recent gain was not beneficial to all cryptocurrencies.
In reality, Bitcoin Dominance, which measures Bitcoin's market capitalization as a percentage of overall crypto market capitalization, is currently attempting to settle above the 20 EMA, which is currently at 45.75 percent. If the price of Bitcoin rises beyond this level, it means that people are becoming more interested in it.
Technical Analysis :
Bitcoin has reclaimed the 20 EMA near $38,000 and is now attempting to settle above the major resistance level of $40,000. The RSI is still in the moderate range, and there is plenty of possibility for more upside momentum if the correct catalysts appear.
If Bitcoin can break through the critical resistance level of $40,000, it will go on to the next resistance level of $42,000, which is around the 50 EMA. A successful test of the 50 EMA barrier will pave the door for a test of the next resistance level at $44,000. If Bitcoin rises above $44,000, it will attempt to break through the $46,000 barrier mark.
On the support side, the previous resistance level near $38,000 at the 20 EMA will function as Bitcoin's first support level. Bitcoin will be pushed towards the next support level at $37,000 if the support at the 20 EMA is successfully tested. If Bitcoin falls below this level, it will fall to the next level of support, which is $35,000.