Bitcoin Tests Support At $37,000

Bitcoin Video 28.05.21.

Bitcoin Is Under Pressure After Unsuccessful Test Of The Key Resistance Level At $40,000

Bitcoin failed to settle above the resistance at $40,000 and is testing the nearest support level at $37,000. Bitcoin’s failure to gain additional upside momentum put pressure on the crypto market, and other cryptocurrencies are also moving lower.

Ethereum is currently trying to settle below the 50 EMA at $2645 while Dogecoin has recently made an attempt to settle below $0.31.

This is a worrisome development for crypto bulls as cryptocurrencies are very dependent on momentum. From the fundamental point of view, it looks that the recent concerns about the environmental impact of Bitcoin mining continue to put pressure on the world’s leading cryptocurrency.

Technical Analysis

Bitcoin has recently made several attempts to settle above the resistance at $40,000 but failed to develop sufficient upside momentum. Meanwhile, RSI has moved out of the oversold territory so there is plenty of room to gain downisde momentum in case the right catalysts emerge.

If Bitcoin manages to settle below the support at $37,000, it will head towards the next support level at $35,000. The test of the support at $35,000 would be a very important event since a move below this level may trigger another wave of selling.

In case Bitcoin manages to settle below the support at $35,000, it will move towards the next support level at $32,000. A successful test of the support at $32,000 will push Bitcoin towards the support which is located at the recent lows at $30,000.

On the upside, Bitcoin needs to settle above the resistance at $40,000 to develop upside momentum. The next resistance level is located at $42,000. If Bitcoin gets above the resistance at $42,000, it wil head towards the resistance at $44,000. A move above this level will open the way to the test of the resistance at $46,000. I’d note that Bitcoin may quickly move between these levels if it manages to settle above $40,000 as a move above the key resistance at $40,000 will attract more speculative traders.

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