Bitcoin Faces Resistance Level At $40k - Market Analysis.
2021-05-24 | Robin Williams
Bitcoin [
BTC] remained
struggling over the weekend as traders react to China’s latest news to strict cryptocurrency regulation. The crypto is down about 36% month-to-date and was trading around
$37k at the time of reporting. Price recoveries should remain limited to $40k
as the broader uptrend weakens.
Slowing momentum has been the dominant theme this year as bitcoin
did not maintain all-time highs.
Future sell signals were
in situ prior to headlines accelerated price declines, which preceded a gradual
then sudden capitulation of long positions.
The RSI on the 4-hour chart has struggled
to interrupt above neutral over the past week. Within a downtrend, oversold readings can persist for extended periods, which suggests
a scarcity of serious support levels.
Bitcoin re-tested minor support around $30k over the weekend, but stronger support is seen around $27k.
BTC is trading below the 100-day moving average
and therefore the correction doesn't appear exhausted at present levels.
This suggests sellers should remain active as bitcoin struggles
to interrupt above the $40k benchmark.
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