Bitcoin (BTC / USD) fell below the psychological level of $ 40,000 due to the strong resistance found in the 7/8 zone of murray around 42,187. From this level, it is making a technical correction. Some analysts and traders had predicted long ago that it would be an imminent reaction to the recent gains.

On the other hand, trading volumes remain low in order to support a bullish advance for BTC. So, as long as Bitcoin remains below the 21 SMA, downward pressure could prevail in the short term.

Despite three attempts to break the $29,000 zone, the bears failed to maintain control and at the end of July BTC regained bullish strength to close above $40,000.

This rally in the price of Bitcoin towards the psychological level improved the market optimism and now investors believe that in the coming weeks there could be a bullish movement to the 45,000 zone.

On the contrary, some long-term holders are, in fact, selling every time BTC / USD rises. Analyst Lex Moskovski has the opposite outlook, which corresponds to the disbelief stage of a classic market cycle.

The key point is to watch the area where the 6/8 Murray and SMA 21 converge. Below this level we can sell, because technically the downward pressure could make it fall to the $37,500 support area.

A break below $37,500 could accelerate its decline to the dynamic support of 200 EMA located at $34,375. The eagle indicator is showing a bearish signal.

Support and Resistance Levels for August 02 - 03, 2021

Resistance (3) 43,182

Resistance (2) 41,354

Resistance (1) 40,340

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Support (1) 38,513

Support (2) 37,629

Support (3) 36,219