Bitcoin Faced Strong Resistance Near $40,000

Bitcoin Video 27.05.21.

Bitcoin Stays Range-Bound

Bitcoin failed to settle above the resistance at $40,000 and continued to trade in the $37,000 – $40,000 range. Other cryptocurrencies were also under some pressure. Ethereum did not manage to settle above $2,900 and moved closer to $2,700 while Dogecoin made an attempt to settle below $0.33.

Bitcoin’s failure to settle above the key resistance at $40,000 after several attempts is a worrisome development for crypto bulls. Bitcoin has recently attracted speculative traders who were ready to buy the dip after the major sell-off, but it looks that it needs additional upside catalysts to get above the $40,000 level and gain more upside momentum.

In recent months, Bitcoin quickly managed to recover after sell-offs as demand for cryptocurrency was very strong. This time, Bitcoin is trying to stabilize under the resistance at $40,000, but failure to develop upside momentum in the upcoming trading sessions may push Bitcoin below $37,000 and lead to a sell-off.

Technical Analysis

The technical picture for Bitcoin has not changed in recent trading sessions. The nearest support level for Bitcoin is located at $37,000, while the nearest resistance level is at $40,000.

If Bitcoin manages to settle above the resistance at $40,000, it will attract more speculative traders and will have a good chance to gain solid upside momentum. Yesterday, Bitcoin made an attempt to settle above $40,000 but buying interest was not sufficient enough to push it to higher levels. This is a worrisome development for the bulls.

On the support side, Bitcoin needs to settle below $37,000 to have a chance to develop downside momentum. The next support level is located at $35,000. This support level has been tested many times in recent trading sessions. While Bitcoin was able to get below $35,000 on several occasions, it quickly returned back above this level. A move below the $35,000 level would present a serious problem for the bulls and may lead to a sell-off.

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