Bitcoin (BTC) short-term price action has been dominated by swings spiking around the $31,000-$32,000 level and the June 6 reversal at this point triggered a quick sell-off that sent the price down to $29,200. .
Surprisingly, on June 7, the price quickly changed course when Bitcoin rallied back up to $31,500, but given the current rejection at this level, traders are likely to proceed with caution, instead of waiting for a quick rally to $35,000.
Here’s what multiple analysts are saying about the short-term outlook for BTC and what support levels to watch moving forward.
A clear range of redistribution
The range-bound trading currently affecting Bitcoin was addressed by crypto analyst and pseudonymous Twitter user il Capo of Crypto, who public the chart below highlighting the “clean range” that BTC has been stuck in for almost a month.
The analyst said:
“What is happening inside the range and what has happened at the top of the range shows that this is a clear redistribution range. Clean break of range low = last leg down confirmed = $21,000 to $23,000.”
Erratic price action
A slightly different result than the current market rally was suggested by trader and pseudonymous Twitter user Phoenix, who public the following chart lamenting the one-month range action for BTC and hinted that we will see more of the same.
Phoenix said:
“On our way to a whole month within a mini-range.” *People have hit the top, the lows have been taken back after the explosion, we go up again…*”
A possible drop to $20,000
For traders trying to get an idea of where could the bottom be, market analyst and pseudonymous Twitter user Rekt Capital public the chart below highlighting the 200-EMA (exponential moving average) as a key indicator to watch.
According to Capital Capital, Bitcoin price history shows that while “tends to confirm uptrends when it breaks above the blue 50 week EMA”, On the contrary “It tends to confirm the maximum financial opportunity when it reaches and breaks below the 200 week EMA.”
A closer look at the recent price action around these indicators was provided in the chart below published by Rekt Capital to provide a better picture of what level of support to look for.
Rekt Capital said:
“This zone is ~confluent with the orange 200-week MA of BTC. In fact, USD/BTC would need a bearish wick below the 200-week MA to reach the ~$20,000 area. Interestingly, the bearish wick tends to occur below 200MA to mark generational lows”.
The total cryptocurrency market capitalization currently stands at $1.24 trillion and the Bitcoin dominance ratio is 46.4%.
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