Bitcoin Retreats As Musk Tweets Broken-Heart Emoji

Bitcoin Video 04.06.21.

Bitcoin Failed To Settle Above The Key Resistance Level At $40,000

Bitcoin found itself under pressure and moved below the $37,000 level after several Elon Musk’s tweets were interpreted as a sign that he may break up with Bitcoin. One of such tweets contained #Bitcoin and a broken-heart emoji.

Other cryptocurrencies are also moving lower. Ethereum is currently trying to settle below the support at the 50 EMA at $2645. Dogecoin moved back below the 20 EMA at $0.3750.

The crypto market remains sensitive to Elon Musk’s tweets as Tesla big position in Bitcoin was viewed as an important step towards mass adoption of the cryptocurrency. The recent Tesla’s decision to stop accepting payments in Bitcoin due to environmental concerns dealt a material blow to Bitcoin, while new tweets may add to the pressure.

Technical Analysis

Bitcoin failed to settle above the key resistance level which is located near the 20 EMA at $40,000 and pulled back below the $37,000 level.

The nearest support level for Bitcoin is located at $35,000. I’d expect plenty of interest from traders in case Bitcoin gets to the test of this key support level as both bulls and bears will try to take control at this important point on the chart.

If Bitcoin manages to settle below $35,000, it will head towards the next support at $32,000. RSI is in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge. If Bitcoin settles below the support at $32,000, it will head towards the next support at $30,000.

On the upside, Bitcoin will continue to face strong resistance near the key $40,000 level. A move above this level will signal that Bitcoin is ready to get out of the current trading range and gain more upside momentum. In this case, Bitcoin may quickly get to the test of the resistance levels at $42,000 and $44,000.

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