Bitcoin: On The Lookout For New Drivers

Bitcoin fell by 1.51%, to $36,698 on Tuesday, June 1. The price action remains stuck in a side trend. The bulls face the challenge of breaking out of $37,400. The market is in wait-and-see mode and has been attempting to breach that level for almost 14 days. So, while the market continues to flatline, let's break down the weekly TF on a logarithmic scale.

woman wearing white dress shirt

Image Source: Upsplash

At $18,000, the price action exited the A-A channel (see chart below). It had two targets of $43,444 (161.8%) and $74,891 (200%). Buyers reached the first goal, but didn't make it to the second one. Looking at the Fibo levels with a margin of error, the correction was 23.6% of the growth from $3,782 to $64,854.

After falling to $30,000, the price action bounced off the trend line. Given that the previous gains came at a rate of $153 per day from $3,782, along the 200% line, resistance is located at $86,547 (September 20, 2021). At this rate, the price action will correct 50% by July 5, and should completely offset the decline by August 16.

As we wrote on Tuesday, if, within 30 hours (until 5:00 UTC on 02/06/2021), the bulls do not test the $39,000 level, clouds will start to gather. The price action stepped up to $37,894. The bears run the show right now. The bulls will need to hold their positions for 45 hours until June 4 (07:00 UTC). Given that the market is thin, a downturn could come fast and hard. The trendline on the weekly TF passes through the $32k level. A retracement to $33k would not be critical, but it could give the bulls a damn good scare.

On the hourly TF, the price action is near the midpoint of a narrowing channel. A symmetrical triangular formation is shaping up. The market needs some upbeat news to break out of it.

Disclaimer: Forecasts which are made in the review constitute the personal view of the author. Commentaries made do not constitute trade recommendations or guidance for working on financial ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Bill Johnson 2 weeks ago Member's comment

Here's one... what's your savings account pay?