Analysts say that the withdrawal of $37,500 is a key “line of defense” for Bitcoin


Bitcoin (Bitcoin) Prices continued to fall as American traders grilled in the United States to enjoy the upcoming May 31 Memorial Day holiday, while regulated futures and options markets (such as the Chicago Mercantile Exchange) were closed throughout the weekend.

Data from Cointelegraph Markets Professional Edition with Transaction view Shown after a short trial of Bitcoin (Bitcoin) The bulls rose above US$37,000 in the early hours of May 29th, and the price has fallen below US$34,000 because they failed to reflect the support needed to move higher.

BTC/USDT 4-hour chart. source: Transaction view

The price trend of Ether (ETH) Almost the same as BTC, attempting to break above $2500 encountered strong resistance, pushing the price of altcoins down to $2300.

$37,500 or half-length

According to the analysis of filbfilb, co-founder of Decentrader, Bitcoin’s price movement is the main source of market chaos because it is still far from the 20-week moving average (WMA). Bull market or bear market, so it is still a bearish situation for Bitcoin. “

Bitcoin 4-hour chart. source: Rest assured

The analyst further pointed out that if Bitcoin can find solid support at the low of $30,000, then 20 WMA may become a major resistance area for any attempt to move higher.

Filbfilb said:

“The decline may make the low $20,000 or 78.6% retracement a possible target. Therefore, next week’s price movement is particularly important.”

According to filbfilb, at this time, it is crucial that BTC recovers $37,500, “to avoid testing weekly support again.”

If Bitcoin manages to rebound and break above $40,000, then filbfilb determines that the previous support/resistance level is between $45,500 and $46,500, which is the next resistance area that needs to be overcome.

Ether line drawing $ 2,300

Ether performed slightly better than BTC, after which it fell back to the 61.8% retracement level because the price was able to rebound above 20 WMA, but due to the weakening of the recovery momentum, it was finally rejected at the “key pivot price” of $3,000.

ETH/USD 4-hour chart. source: Rest assured

Filbfilb believes that $2300 is an important support area for Ethereum. If the bulls want to gather momentum to try to break through $3,000 and test $3,300 again, they need to hold Ethereum. In this case, “highly dependent on Bitcoin power”.

Overall, analysts expect that Ethereum will outperform BTC in any uptrend and “at least match any bearish trends”.

He says,

“At present, the focus is on Bitcoin to see if it can maintain the low before the weekend, especially the 200 DMA, which is currently the bottom line for the bulls.”

The views and opinions expressed here are only those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading action involves risk, so you should conduct your own research when making a decision.