Bitcoin Video 01.06.21.
Resistance At $37,000 Remains Strong
Bitcoin has recently made an attempt to settle above the resistance at $37,000 but pulled back. Other cryptocurrencies are also under some pressure today.
Bitcoin’s volatility decreased compared to what we’ve seen in the first half of May, and it looks that it is trying to stabilize in the range between the support at $35,000 and the resistance at $37,000.
Meanwhile, Bitcoin Dominance, which measures Bitcoin’s market capitalization as a percentage of total crypto market capitalization, failed to settle above the 20 EMA at 44% and moved below the 43% level. The potential continuation of the previous downside trend is a material risk for Bitcoin bulls.
Bitcoin tested the resistance at $37,000 but did not manage to develop upside momentum. Bitcoin has already made several attempts to settle above $37,000 in recent trading sessions but these attempts were not successful.
As a result, Bitcoin continues to trade in a tight range between the support at $35,000 and the resistance at $37,000 which is a worrisome development for crypto bulls.
The key support level at $35,000 is in the nearby, and a move below this level may trigger another wave of selling. RSI has moved back into the moderate territory, and there is plenty of room to gain additional downside momentum.
If Bitcoin settles below the support at $35,000, it will head towards the next support at $32,000. A successful test of this support level will push Bitcoin towards May lows at $30,000.
On the upside, Bitcoin needs to settle above the resistance at $37,000 to have a chance to test the key resistance at $40,000. The 20 EMA is located at $40,500, so Bitcoin will likely face strong resistance in the $40,000 – $40,500 area.
In case Bitcoin manages to settle above the 20 EMA, it will head towards the resistance at $42,000. A successful test of this level will push Bitcoin towards the next resistance at $44,000.
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