Bitcoin Video 07.06.21.
Bitcoin Continues To Get Strong Support Near $35,000
Bitcoin continues to trade in a range between the support at $35,000 and the resistance at $37,000 as traders wait for additional catalysts.
According to recent reports, China banned several social media accounts that were focused on crypto markets as the country continues to put pressure on the industry.
Interestingly, this news had little impact on crypto markets, and most leading cryptocurrencies are mostly flat at the start of the week. Ethereum is gaining some ground and is trying to get above the 20 EMA at $2815 while Dogecoin is stuck below its 20 EMA at $0.3750.
Bitcoin has recently made an attempt to get above the nearest resistance level at $37,000 but failed to develop sufficient upside momentum and pulled back. As a result, Bitcoin continues to trade in the $35,000 – $37,000 range.
If Bitcoin manages to settle above the resistance at $37,000, it will head towards the next resistance level which is located at the 20 EMA at $38,800. A move above this level will push Bitcoin towards the major resistance at $40,000. In case Bitcoin settles above this resistance level, it will gain additional upside momentum and head towards the resistance at $42,000.
On the support side, the nearest support level for Bitcoin is located at $35,000. A move below this level will present a serious problem for Bitcoin bulls as it will signal that Bitcoin will try to develop additional downside momentum.
If Bitcoin declines below $35,000, it will head towards the next support at $32,000. A successful test of the support at $32,000 will open the way to the test of the support at $30,000.
From a big picture point of view, Bitcoin managed to stabilize after the strong downside move in May. However, Bitcoin is located too close to the key support level at $35,000, and bears will likely try to push Bitcoin below this level.
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