09:25Bitcoin Price Analysis - 3rd June 2021
BTC/USD appears set to begin the month of June near important support levels as it continues to languish within a solid bearish trajectory. After trying to mount a bit of a comeback a couple of days ago, Bitcoin has faced strong headwinds again and is now trading within sight of the 33500.00 ratio, which could prove to be a rather pivotal value if it is penetrated lower. On the 19th and 23rd of May, this level did spark reversals higher, but this only came after BTC/USD tested lower depths.
After starting the month of May with what appeared to be a desire to retest highs, the 60000.00 BTC/USD mark did prove to be important resistance. In actuality, BTC/USD never traded above the 59750.00 mark in May, but not being able to break the sixty thousand threshold seemed to be a moment of inflection as the cryptocurrency began to incrementally trade lower.
On the 12th of May, BTC/USD was trading near a high of nearly 58890.00, but after being able to fight higher to this level after testing approximately 53000.00 two days before, things began to fall apart for Bitcoin. The lowest depths BTC/USD traded during May was on the 19th, when the cryptocurrency was within a strong selling cycle and fell to a value of almost 29800.00. That value had last been tested in the late January of this year.
During the month of May, BTC/USD has not quite lost half of its value, but it has done bullish speculators little in the way of favors - as it has not been able to produce a solid parade of higher momentum. Since the 20th of May, BTC/USD has essentially created brief reversals higher, only to have them smacked back downwards. This is where things may prove more dangerous in the coming weeks. If resistance levels continue to prove durable between the 38000.00 to 42000.00 junctures, negative sentiment and bearish technical charts may continue to foster the potential for more selling.
Speculators will need to see a bona fide breakout higher before they believe that a true reversal is going to emerge within BTC/USD and that big buyers are confident enough to again wave their bullish flags. If fear lingers within the broad cryptocurrency market, and BTC/USD in particular does not show an ability to break through higher resistance levels, the bearish stance within Bitcoin may continue to dominate the trend.
BTC/USD Outlook for June:
Support junctures of 34000.00 to 32000.00 need to be watched closely. If Bitcoin continues to stay within its current price range and is not able to mount a sustained buying spree, support levels may prove to be vulnerable within these values.
If the 32000.00 level is broken lower traders may continue to grow nervous. If the 30000.00 mark is punctured and the price of BTC/USD shows the potential to sustain within that location things could grow more volatile. Large traders still holding Bitcoin may begin to grow nervous and try to get out of some of their positions which could set off more selling and cause new lows to be tested which may target early January values.
For bullish speculators who want to find a trend upwards, they may want to wait for the 38000.00 to 42000.00 levels see sustained trading above. If BTC/USD can begin to show it has the ability to trade above these levels and make incremental higher moves, an upwards trend which could try to test the 50000.00 level is definitely not out of the question.
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