In 1-hour chart, BTC / USD has found resistance at the 200 EMA located at 39,590. On the chart, we notice that a head-and-shoulder pattern is in the cards. We expect the formation of the second shoulder to take place in the zone of 35,200 approximately.
The Bitcoin, in recent weeks has received a strong punch from China. Investors are stoking fears every time when China attempts to stop uncontrolled speculation in the cryptocurrency markets.
At its core, China has a strategic desire to protect and promote Beijing's drive to develop its own digital currency Renminbi. According to these experts, Guo Shuqing, secretary of the People's Bank of China (PBoC) and chairman of the China Banking and Insurance Regulatory Commission (CBIRC), chaired a meeting on Monday on the ban on financial institutions and payment companies provide services related to cryptocurrency transactions, by direct order of the State Council, China's main administrative body.
According to experts, if the pressure from China persists in the medium term, Bitcoin could fall to levels of 20,000 and consolidate below this level. No doubt, the fears of investors and widespread panic could be stronger than the pressure of China.
In view of the fact that BTC has made it clear that it has a firm bottom in the 30,000 zone, the price is likely continue consolidation and could strengthen until it reaches the psychological level of $ 50,000.
Based on the 1-hour chart, we recommend buying BTC if it bounces above 35,200 or if it breaks the 200 EMA above 39,500 with targets at 43,750 3/8 zone of murray.
Support and Resistance Levels for May 25 – 26, 2021
Resistance (3) 47,581
Resistance (2) 43,676
Resistance (1) 41,292
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Support (1) 36,689
Support (2) 35,063
Support (3) 31,219
