Bitcoin (BTC) short-term price action was dominated by reversals that fired between $31,000 and $32,000, and the June 6 reversal at that point triggered a quick sell-off that sent the price down to $29,200.
Surprisingly, the price quickly reversed on June 7 as Bitcoin returned to $31,500, but given the current rebuff at that level, traders are likely to tread carefully rather than expect a quick rise to $35,000.
Here’s what several analysts have to say about BTC’s short-term outlook and what support levels to watch for going forward.
A clear range of redistribution
The range trading currently affecting Bitcoin has been reviewed by a crypto analyst and Twitter user under the pseudonym il Capo of Crypto, who published The following chart shows the “clean range” where BTC has been stuck for almost a month.
The analyst said
“What happens inside the range and what happened at the high of the range shows that this [a] a clear range of redistribution. Clear range low break = last leg down confirmed = 21k-23k.”
The current price movement of the trigger
A crypto trader and Twitter user under the pseudonym Phoenix suggested a slightly different outcome of the current market quote. published the following chart laments BTC’s monthly range-bound trading and hints that it will see more of the same.
“On our way to a full month back in the mini-box to fully deploy flip-flop-your-biased-non-stop-evil-pleb-and-gtfo. * People climbed to the top, after the nuclear bomb the lows were taken again, are we climbing again? *
Coinbase Balance Drops 30K BTC As Bitcoin Price Loses 6%
Possible reset up to 20 thousand dollars
For traders trying to figure out where the bottom might be, market analyst and Twitter user under the pseudonym Rekt Capital published The following chart highlights the 200-EMA (exponential moving average) as a key indicator to keep an eye on.
According to Rekt Capital, bitcoin’s price history shows that while it “tends to confirm uptrends when it breaks the blue 50-week EMA”, on the other hand, it “tends to confirm the maximum financial opportunity when it reaches and breaks from the black 200 -weekly EMA.
A closer look at the recent price action around these indicators is presented in the following chart. published from Rekt Capital to get a clearer idea of what level of support to look out for.
Rekt Capital said,
“This area merges with the orange 200-week moving average of #BTC. In fact, $BTC would have to drop below 200MA to reach the $20K area. Interestingly, the downward flow tends to occur below the 200MA to mark the bottom of the generations.”
The total market capitalization of cryptocurrencies currently stands at $1.24 trillion, with a Bitcoin dominance rate of 46.4%.
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Credit : cointelegraph.com