Bitcoin price recovers $31.5K, but traders say ‘scam’ price action will bring more downside

Bitcoin’s (BTC), short-term price action was dominated by whipsaws around the $31,000-$32,000 level. The June 6 reversal at that point triggered an immediate sell-off which drove the price down to $29,000.

Surprisingly the price reversed its course on June 7th as Bitcoin rallied to $31,500. However, given the current rejection at that level, traders will likely proceed cautiously rather than anticipate a rapid surge to $35,000.

BTC/USDT 1-day chart. Source: TradingView

Here are the views of several analysts on the current outlook for Bitcoin and what support levels should be considered as we move forward.

Clear redistribution range

Crypto analyst and pseudonymous user on Twitter, il Capoof Crypto addressed the issue of range-bound trading that is currently affecting Bitcoin. He posted the following chart highlighting the “clean” range that Bitcoin has been in for almost a month.

BTC/USD 4-hour chart. Source: Twitter

According to the analyst,

“What’s happening within the range and at the range high shows that there is a clear redistribution range. Clear break of the range low = Last leg down confirmed = 21K-22.3K

Flip-flop price action ongoing

Phoenix, a crypto trader and pseudonymous Twitter User, suggested a slightly different outcome to the market chop. He posted the following chart in which he lamented the month-long range-bound trading of BTC and hinted at more.

BTC/USD 2-hour chart. Source: Twitter

Phoenix said,

“On our way towards a whole month inside a mini-range again to fully deploy the flip-flop-your-bias-non-stop-angry-pleb-and-gtfo. *Pl took the lows again after the nuke. *”

Coinbase balance drops 30K BTC, as Bitcoin prices plummet 6%

Possible flush out up to $20K

The following chart was posted by Rekt Capital, a market analyst and pseudonymous Twitter User. It highlights the 200-EMA (exponential Moving Average) as a key indicator traders should be watching.

BTC/USD 1-week chart. Source: Twitter

Rekt Capital’s price history of Bitcoin shows that it “tends not to confirm uptrends whenever it breaks above 50-week EMA,” but on the other side, it “tends o confirm maximum financial opportunity when reaches or breaks down below the 200-week EMA.”

Rekt Capital provided the following chart to give a closer look at recent price movements around these indicators. It also provides a better idea of the support level you should be looking out for.

BTC/USD 1-week chart. Source: Twitter

Rekt Capital said,

This area is confluent with the orange #BTC 200 week MA. To reach the $20K zone, $BTC must downside wick below 200MA. To mark generational bottoms, downside wicking is more common below the 200MA.

The total cryptocurrency market is now worth $1.24 trillion, and Bitcoin’s dominance rate at 46.4%.

com. You should do your research before making any investment or trading decision.

2021's Most Anticipated Growth & Wealth-Building Opportunity

Join Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency Together

Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

2021's Most Anticipated Growth & Wealth-Building Opportunity

Join Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency Together

Close Bitnami banner
Bitnami