The price of the leading cryptocurrency, Bitcoin [BTC] continues to limp lower as traders within the U.S. hit the BBQ to enjoy the upcoming Memorial Day holiday on 31st May and controlled futures and options markets just like the CME are closed through the weekend.
In line with CoinMarketCap and TradingView, after a quick attempt by Bitcoin [BTC] bulls to rally above $37k within the early morning hours on 30th May, the worth has tumbled below $34k as the support needed for a move higher did not manifest.
Price action for Ethereum [ETH] was nearly just like that of BTC, with an effort to hold over $2,500 USD met with stiff resistance that pushed the altcoin’s price right down to $2,300 USD.
According to analysis from filbfilb, co-founder of Decentrader, Bitcoin’s price action may be a major source of the market’s confusion as it still remains ways far away from the 20 Week Moving Average (WMA) “which is usually the road between Bitcoin being either during a bull or market and intrinsically remains a bearish scenario for Bitcoin.”
The analyst went on to further state that if Bitcoin is in a position to seek out solid support within the low $30k, the 20 WMA could become a serious resistance zone in any plan to move higher.
While explaining further, Filbfilb said:
“A drop lower would likely make the low $20k or the 78.6% retracement a possible target. As such, price action over a subsequent week is especially important.”
At now, consistent with filbfilb, it’s crucial for BTC to reclaim $37,500 “to avoid a retest of weekly support.”
Should Bitcoin manage to stage a rally and break over $40k, filbfilb identified the previous support/resistance zone at $45,500 USD to $46,500 USD AS the next area of resistance that will have to be overcome.
While talking on the other part, Ethereum performed slightly better than BTC after it sold off back to the 61.8% retracement as the price was able to recover above the 20 WMA, but was ultimately rejected at the “critical pivot price” of $3k as the recovery momentum faded.
Filbfilb identified $2,300 USD as a crucial area of support for Ether that might need to be held if bulls wanted to collect momentum for an effort to interrupt above the $3k level and retest $3,300 USD, with this scenario be highly “dependent upon the strength of Bitcoin.”
Overall, the analyst expects that Ether will outperform BTC in any upside move and “at least match any bearish movement.”
“For now, eyes are on Bitcoin to ascertain if the lows are often held going into the weekend, with particular attention being around the 200 DMA which is presently the road within the sand for the bulls.”