Bitcoin (BTC) remains trapped beneath the moving average (200) and $40k as analysts agree with the recent price correction that bears will be transitory. The underlying components of the price correction look temporary and that has the cryptocurrency markets looking complacent. BTC price remains lower for the third straight day on Saturday as Bitcoin energy consumption concern drives short-term losses on the lead crypto. Amid the dull outlook, fresh support emerges at $34k. At the time of this post, BTC is trading at $34,533, down 4.35% on the day. Bitcoiners remain optimistic on a bull run as Bitcoin 2021, the world’s largest gathering of crypto enthusiasts commences on June 4 – 5 at Wynwood’s Mana Convention Center. It’s a must-attend event for cryptocurrency investors, the two-day event has moved from Los Angeles to Miami, and investors are anticipating a huge announcement. Miami Mayor Francis X. Suarez, Twitter’s Jack Dorsey, and MicroStrategy’s Michael Saylor are among the speakers at the conference.
Key Levels
Resistance Levels: $43,000, $40,000, $37,000
Support Levels: $30,000, $27,000, 24,000
BTC/USD Daily Chart BTC is moving lower for the third session in a row, as investors remain cautious at the end of the week and ahead of the new week. The lead crypto has dipped below $35,000 and is seeking support at $34,000, after surging to a high of $40,855 earlier this week. Meanwhile, a decline below $30,000 would be required to reverse the present near-term advance.
Will we see a return past the $40,000 barrier? Traders are keeping a keen eye on BTC volatility and close of daily candlestick above the moving average (MA 200) barrier to confirm the next bullish run to $50,000. The ongoing weakness in price is in sharp contrast to confidence levels for a bounce up as the Relative Strength Index is at the oversold zone. If the RSI bounces up within expectations, the BTC/USD could respond with gains past $40,000.
BTC/USD 4-Hour ChartOn the lower time frame, BTC/USD has retraced back under the 4-hour moving average (MA 50) $37,325 support turned resistance area after failing to gain impetus above resistance near the $40,500 level for the second time. If weakness below the $37,325 level persists, the BTC/USD pair could begin to retreat towards the $30,000 price region.
Traders that are positive on the BTC/USD pair may want to buy near $34,000 fresh support in the hopes of a rally to $40,000. However, BTC stands at the back foot at the end of the week, signaling a possible continuation of a pullback from the $40,900 weekly high. Momentum on the lower time frame remains in the negative territory.
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