The short-term price action of bitcoin (BTC) was driven by pressures of around the $ 31,000- $ 32,000 level, and the June 6 reversal at this level prompted rapid sales that led to the price falling to $ 29,200.
Surprisingly, on June 7, the price reversed its trend rapidly and bitcoin fell back to $ 31,500, but given the current decline at this level, traders tend to act cautiously, rather than expect a quick jump towards $ 35,000.
Here’s what some analysts are saying about the near – term prospect of BTC and the levels of support for the future.
Clear redistribution range
The crypto analyst known on Twitter as the multiple Capo of Crypto (which published the following chart highlighting the “volatility range” that Bitcoin has been in for almost a month) looked at the topic.
The analyst said,
“What happens within the range and what happened at the top of the range shows that it is a clear redistributive range. Clear break from bottom of range = last confirmed leg down = 21,000 to 23,000. ”
The price swing continues
A slightly different outcome from the current market downturn has been suggested by a cryptocurrency trader and Twitter user called Phoenix, which published the following graph. He is reluctant to keep BTC in a volatility zone for a month and suggests that this situation will happen again.
“We’re going into a whole month in a mini-strip again to roll out the flip-flop completely – no offense. * People screwed up the top, the eggs rose, after the fall, are we going back up? * ”
Read also: Coinbase Balance drops 30,000 BTC as Bitcoin Price Suffers 6% Loss.
Potential reduction to $ 20,000.
For traders looking to get an idea of where the bottom might be, the market analyst known on Twitter as Rekt Capital posted the following chart highlighting the exponential moving average (200 -EMA) as a key indicator to look at.
According to Rekt Capital, bitcoin price history shows that while there is a “tendency to confirm uptrends when crossing the 50-week blue EMA”, it usually confirms the maximum financial opportunity when it reaches the 200-week black EMA and breaks from it “.
A closer look at the recent price action on these indicators is provided in the following chart post with Rekt Capital to provide a better picture of the level of support to view.
Rekt Capital said,
“This field ~ is associated with a 200-week MAB #BTC orange. In fact, BTC is expected to break below the 200MA to reach the ~ $ 20,000 area. Interestingly, bearish peaks below 200MA usually occur to mark generational lows. ”
The overall market capitalization of cryptocurrencies is now $ 1.24 trillion and the dominance rate of bitcoin is 46.4%.
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