BTC / USD is trading below the 200 EMA and the 21 SMA showing a bearish sign, having failed to consolidate above $ 36,000. As long as it continues to trade below this level, a decline is expected to the support of $31,250.
The correction that is now taking place leaves Bitcoin firmly within its established trading range between the 6/8 murray zone and the 5/8 murray zone. Traders are aware of the various obstacles it must overcome before it can regain bullish momentum above the psychological level of $ 40,000.
The technical barrier in 4-hour charts is located in the area that ranges from 36,000 to 37,500, a strong top that Bitcoin must overcome and then consolidate and continue its upward path to the level of 43,500, another area of strong resistance.
Below 6/8 of murray, Bitcoin is expected to continue with the downward pressure. Whenever it tries to rise, a panic and uncertainty takes over the market. As a result, the cryptocurrency falls in value and the price makes a technical rebound at the level of 5/8 murray.
This scenario has been repeating since the month of May. It is likely that soon BTC will exit this range zone and there may be a movement towards the 43,500 zone or a fall to the 4/8 murray support at $ 25,000. The key level will be 37,500 above which a sustained increase is expected, but below it will be a prolonged fall.
Our recommendation is to sell below 35,452 with targets at 31,250. If this level is broken, BTC could sold with targets at $30,000 and $25,000 in the medium term.
Support and Resistance Levels for July 05 - 06, 2021
Resistance (3) 36,496
Resistance (2) 35,450
Resistance (1) 34,566
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Support (1) 33,169
Support (2) 30,881
Support (3) 29,214
