In the early hours of the American session, BTC / USD (Bitcoin) is trading slightly higher, above the symmetric triangle. It seems that it has difficulty breaking it and it is seen that there could be a retracement to the support of 2/8 of murray.
On the other hand, Bitcoin's mining difficulty, which measures how much computer power it takes to produce a new coin, dropped significantly by 16% on May 30. The network adjusts the difficulty once every two weeks to reflect the level of competition among miners. The recent decline indicates that there is less competition.
More than 75% of the miners that validate Bitcoin transactions are located in China. However, the Chinese government has called for a severe crackdown on and punishment of illegal securities activities, including mining and cryptocurrency trading.
Without a doubt, BTC is going through a difficult time. The digital asset could trade laterally between 45,000 and 30,000 as the euphoria of investors has dissipated. Now they are more cautious after a 50% drop in the price that makes them more careful.
In the chart, we can see BTC consolidating above the SMA of 21 and above the 2/8 of murray. While it remains above the key level of 37,000, it is expected that there will be new rises and it will climb to the zone of the 200 EMA around 46,200.
The eagle indicator is in the neutral zone, there is no clear signal where the next move could point, so we recommend waiting for a bounce at 37,000 and buying in that zone with targets at 43,000 and 46,250.
Support and Resistance Levels for June 03 – 04, 2021
Resistance (3) 41,939
Resistance (2) 40,059
Resistance (1) 39,491
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Support (1) 37,205
Support (2) 34,920
Support (3) 32,551
