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Bitcoin sees rally above $40,000 pull back

02 Aug 2021

Bitcoin falls back under $40,000 currently

There was a bullish play in Bitcoin on the weekend as price rallied above $40,000 and it looked like things were setting up for a technical breakout.

But so far, there is no follow through to that price action to start the new week as we see a pullback now back under the pivotal $40,000 mark – also tracking back towards the 100-day moving average (red line) @ $39,874.
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The topside push also seems to run into some resistance from the 38.2 retracement level of the recent downswing @ $42,589 , for what it’s worth.

In any case, the pullback draws Bitcoin back to its previous range of between $30,000 and $40,000. The daily close today will be vital as buyers will have to try and keep above the 100-day moving average and $40,000 level to sustain any upside momentum.

Otherwise, it’s back to the drawing board again.

In terms of news, there’s still the reverberations of US legislators pushing for tighter restrictions on crypto and also China continuing to pledge to accelerate oversight on trading activities in the crypto market as well.