In the early hours of the American session, Bitcoin BTC/USD is trading at the 2/8 murray level, a key area. If the BTC remains above this level, there could be a new upward momentum to the zone $43,750.
The crackdown on crypto miners in China - who account for around 70% of the world's supply - is the latest episode in a series of actions that Beijing is taking against the digital currency sector. Some investors and analysts in the digital currency market have claimed that fears about China's regulatory measures could persist.
During the weekend we saw that BTC fell to the 1/8 murray zone, key support, and demonstrating the strength of this level that coincides with the psychological level of $ 30,000. BTC / USD has set a floor for now, and as long as it remains above $30,000, there is a probability that it will hit the psychological level of $50,000.
On the 4-hour BTC chart, you can see a trend line drawn from the beginning of the BTC decline, to the low of $31,000. That line has been broken. If BTC consolidates above that channel bearish, it could be released from the downward pressure and there could be a further bullish momentum to $45,000 and the zone of $50,000 in the short term.
We can also observe the double bottom, which represents a good zone to buy if the price again makes a correction towards this zone.
Our recommendation is to buy the BTC at the current levels above $37,500 with targets at $43,750 and $50,000 zone of the 200 EMA.
Support and Resistance Levels for May 24 – 25, 2021
Resistance (3) 43,676
Resistance (2) 41,595
Resistance (1) 38,465
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Support (1) 36,112
Support (2) 34,146
Support (3) 30,397
