Cryptocurrency News

Analyst says reclaiming $ 37,500 is bitcoin’s significant ‘line in the sand’


Bitcoin (B T c) Prices continue to fall as traders in the US hit BBQ to enjoy the upcoming Memorial Day holiday on May 31 and regulated futures and options markets such as CME are closed through the weekend.

data from Coin Telegraph Market Pro and Trading view Shows that after a brief attempt at bitcoin (B T c) The bull failed to reveal the necessary support for a higher move as the price has fallen below $ 34,000, to rebound above $ 37,000 in the morning hours of May 29.

BTC / USDT 4-Hour Chart. Source: Trading view

Price action for ether (ETH) Was almost identical to BTC, facing stiff resistance with an attempt to break above $ 2,500 which pushed the price of altcoin down to $ 2,300.

$ 37,500 or bust

According to an analysis by Decentrader’s co-founder, filbfilb, bitcoin’s price action is a major source of market confusion as it “does away with the 20-week moving average (WMA)” which is typically the line between bitcoins. Bull Or the bear market and thus there remains a recessionary situation for bitcoin. “

Bitcoin 4 hour chart. Source: Decentral

The analyst further noted that if bitcoin is able to garner solid support in the low $ 30,000, 20 WMA could turn into a major resistance zone in any attempt to move higher.

Filmfilb said:

“A drop could make a low $ 20,000 or 78.6% retracement a potential target. Therefore, price action next week is particularly important.”

At this time, according to Filmfilb, it is important for BTC to reclaim $ 37,500 “to avoid re-testing of weekly support”.

Should bitcoin manage to stage a rally and break above $ 40,000, filbfilb identified the previous support / resistance zone as the next resistance zone of $ 45,500 to $ 46,500 that would need to be overcome.

Ether $2,300. Draws a line on

The Ether fared slightly better than BTC, as it sold back at 61.8% retracement as the price was able to bounce back above 20 WMA, but was eventually rejected at a “significant pivot price” of $ 3,000 Was because the pace of recovery had faded.

ETH / USD 4-Hour Chart. Source: Decentral

Filbfilb identified $ 2,300 as an important area of ​​support for Ether, which would need to be held if bulls want to gather momentum to break above the $ 3,000 level and attempt to reclaim $ 3,300, With this scenario “is highly dependent on the strength of bitcoin.”

Overall, the analyst expects Ether to outperform BTC in any reversal move and “at least match any slowdown move.”

He said,

“For now, the eyes are on bitcoin to see if the lows can be sustained over the weekend, especially given the attention around the 200 DMA which is currently the line in the sand for bulls.”

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