In the early trading hours of the American session, BTC / USD (Bitcoin) is trading within the symmetrical triangle according to a 4-hour chart, showing a consolidation signal after the fall in May to nearly $30,000. Now we notice that BTC is ready to challenge again the psychological level of $50,000.
On the other hand, Nikolaos Panigirtzoglou, JPMorgan strategist and Bitcoin expert said: The longer-term signal remains problematic as it has not yet shortened. Price drops to the $26,000 level would still be needed before the longer-term momentum.
In the medium term, Panigirtzoglou sees a fair value for Bitcoin in the range of $24,000 to $36,000. Analysts believe that the May crash in Bitcoin has severely weakened institutional demand, which is likely to keep prices at this level for now.
In view of these discouraging factors for BTC, from a technical point of view, we expect the $ 30,000 floor, confirmed by a double bottom, to give support for BTC to stay above this level. On this condition, the crypto asset will be able to break again the downward pressure zone of $50,000 and thus reach the goal of $75,000 by the end of the year.
Our recommendation is to continue buying BTC, if it makes a technical bounce at the 21 SMA or the bullish line of the triangle, around $34,555. Provided that it breaks and consolidates above the symmetrical triangle, we can buy BTC with targets at the 200 EMA at around of $46,946.
Support and Resistance Levels for June 01 – 02, 2021
Resistance (3) 40,059
Resistance (2) 39,282
Resistance (1) 37,934
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Support (1) 34,652
Support (2) 32,551
Support (3) 31,369
