Is Bitcoin Set for a Recovery Towards $45,000?

 

Bitcoin has defended the USD 40,000 support level and it could climb higher in the coming hours.

The cryptocurrency market has underperformed over the past few days, with the total market cap falling by nearly $300 billion over the period.

The bearish trend saw Bitcoin lose its position around the $45,000 region and it is currently trading around $42,000 per coin. The leading cryptocurrency has been able to defend the major support level around USD 40,000 in the last few days.

This could allow it to surge higher in the coming hours and days. At the time of writing, BTC is trading at $42,189, up less than 1% over the past 24 hours.

There is no major catalyst behind the current market action. The total cryptocurrency market cap is around $1.7 trillion and it could keep increasing in the coming hours and days.

If the value of bitcoin stays above USD 42,000, the leading cryptocurrency could run towards the USD 45,000 resistance level before the end of the week.

Important levels at a glance

The 4-hour chart of BTC/USD is looking neutral right now, with Bitcoin up less than 1% over the past 24 hours. Technical indicators are showing Bitcoin recovering from its recent plunge.

The MACD line is hovering around the neutral zone thanks to Bitcoin's recent performance coming out of negative territory. The 14-day Relative Strength Index of 46 shows that Bitcoin is no longer in oversold territory.

If the slow recovery continues, Bitcoin could push into overbought territory in the coming days or weeks.

In case the rally intensifies, BTC is likely to surpass the first major resistance level at $44,012 in the next few hours. A longer uptrend would allow the leading cryptocurrency to trade above $45,000 for the second time this month.

However, if the bears regain full control, bitcoin might struggle to defend the major support level at $40,000.

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