Bitcoin (BTC) – Slipped back towards 30,000 unable to capitalize on the early week gainsPosted on Thursday, June 2 2022 at 9:08 pm GMT+0000
The flagship cryptocurrency, Bitcoin (BTC), ended Wednesday on a fragile note, as it failed to capitalize on the gains it locked earlier in the week. However, the 20-day simple moving average managed to buffer the negative pressures, lifting the price back above the 30,000 mark.
Meanwhile, momentum oscillators started reflecting some indecisiveness among traders following the recent disappointing performance. The IMI is now back around its 50-neutral mark after barely overcoming it, while the MACD is still improving above its signal line in the negative region.
Should the 20-day simple moving average successfully defend the last rebound and harshly deny additional declines from unfolding, the price will jump back to challenge the crucial 33,000 – 34,300 area, where the descending trendline stretched from March 28th peak and the 50-day simple moving average also reside. If the bulls manage to knock down that heavy ceiling, they will gain additional confidence to crawl towards the March 7th inside swing low at 37,100. Further higher, the spotlight will turn to the April 21st high of 43,000.
On the flip side, if the 20-day simple moving average at any time gives way, the next support could arise from the May 26th bottom of 28,000. Breaching that barricade too, the price will inch lower to retest the 18-months low of 25,400, hit on May 12th.
To summarize, Bitcoin seems fighting to find its feet after Wednesday’s noticeable withdrawal. However, as the broader outlook remains blurry, a drop below the 28,000 may revive the downtrend. Only a jump above 34,300 will restore optimism in the last rebound.