In the early hours of the American session, Bitcoin BTC / USD is trading with a slight relief of the downward pressure, after having broken the downward pressure line, and staying above the support of 2/8 of murray around of $37,500.
Bitcoin BTC / USD fell to $ 31,251 last week, more than 50% below its annual high of $ 64,895 that it registered in mid-April.
Some of the reasons for this fall are Elon Musk's decision not to accept Bitcoin as a means of payment to buy Tesla electric cars, the intensified debate about the heavy energy consumption that Bitcoin mining requires, the prohibition of China to its financial institutions to offer services related to cryptocurrency assets, as well as online payment companies.
Without a doubt we are facing a phase of consolidation of BTC that could last a good time. The crypto could be trading between the levels of $30,000 to $50,000 in the medium term.
In the chart, we can see that Bitcoin has broken the symmetric triangle and now remains above the SMA of 21. As long as it is located above this area, the bias will be bullish in the short term for BTC to $43,750.
The area where the demand will be strongest is the 3/8 murray level located at $43,750. The price could rise to the psychological level of $50,000. At this level, a strong resistance is located in the area of the 200 EMA, so this will be a very strong top, as we expect a downward movement at this level again. Any rally above this zone will likely be short-lived.
Our recommendation is to continue buying as long as it remains above the 21 SMA and above the 2/8 murray located at $37,500 with targets at $43,750 and $50,000.
Support and Resistance Levels for May 27 – 28, 2021
Resistance (3) 43,676
Resistance (2) 42,359
Resistance (1) 40,525
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Support (1) 38,467
Support (2) 37,113
Support (3) 35,535
