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BTC Price Analysis: Trading in Ranges Persist for the 4th Week in a Row, Bitcoin Death Cross Not a Threat to Bulls

BTC
  • BTC is currently trading around $36,000 after returning under resistance at $40,000
  • Bitcoin has been around $30,000-$42,000 trading in ranges
  • A death cross in itself is not enough to activate a sell-off due to the lagging nature of the indicator

The cryptocurrency market is in a sell mode and for the 4th week in a row, Bitcoin has been around $30,000-$42,000 trading in ranges. The bears’ attempt to lower prices on June 8 failed, with the lowest position achieved at $31,065. The price of Bitcoin then rose past the psychological $39,000 mark, reaching a weekly high of $41,322. At the time of this analysis, BTC is currently trading around $36,000 after returning under resistance at $40,000. Meanwhile, analysts are eyeing the $30,000 mark, which was briefly reached during a violent selloff last month. Given the paucity of technical support between $20,000 and $30,000, breaking the round-number might ignite another wave of selling. On the daily chart of the BTC/USD pair, emerges the threat of a death cross which occurs when the moving average (MA 50) crosses below the moving average (MA 200) signaling a likely bear market. A death cross in itself is not enough to activate a sell-off due to the lagging nature of the indicator as the anticipated action has already taken place. This situation reduces the effectiveness of the death cross signal.

Key Levels
Resistance Levels: $43,000, $40,000, $37,500
Support Levels: $35,000, $33,500, $30,000

BTC/USD Daily Chart: Ranging

BTC/USD Daily Chart

At the start of the week, BTC/USD pair reached a high of $41,322. This is an important level of resistance because the pair has been unable to break through it for some time. Hence, It returned beneath the critical $40,000 zone. In addition, the moving average (MA 50) and moving average (MA 200) are attempting to cross bearishly, and the Relative Strength Index (RSI) is under its midline of 50.

If the price declines under the $35,000 level, a more sustained bearish trend may be verified. Therefore, the pair may keep falling as bears target the $30,000 low mark reached on May 19. If more bullish measures are taken, immediate resistance might be found at the $40,000 level, before going on to $43,000. Once the anticipated death cross forms only a move over the moving average (MA 200) around $42,800 would change this perspective to optimistic.

BTC/USD 4-Hour Chart: Ranging

BTC/USD 4-Hour Chart

As seen on the 4-hour time frame, the BTC/USD pair is starting to erase its significant weekly gains. The pair has begun a new drop after failing to settle above $38,000 and the short-term moving average (MA 50 & MA 200 convergence). To avoid a price slide towards $35,000 and possibly $33,500, Bitcoin bulls must defend the $36,000 round mark today. The pair could climb again towards the $38,000 level if the $36,000 – $35,000 support region is held.

The short-term Relative Strength Index (RSI) has plummeted to 33, which is near the oversold territory and is flattening around it. The BTC/USD pair is only positive when trading over $38,000; significant resistance levels are seen at $40,000 and $43,000. Sellers may test the $33,500 and $30,000 levels if the BTC/USD pair goes below $35,000. The BTC/USD pair may remain under pressure heading into the weekend.

Note: Kryptomoney.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

Image Credit: iStockphoto

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