Bitcoin Video 08.06.21.
Bitcoin Remains Under Pressure
Bitcoin managed to get below the key support level at $35,000 and is testing the next support at $32,000. Other cryptocurrencies are also moving lower.
Ethereum gained material downside momentum after it managed to settle below the 50 EMA at $2645. Currently, Ethereum trying to settle below $2500. Dogecoin declined below its 50 EMA at $0.3490 and made an attempt to settle below $0.3150.
The market mood is clearly bearish in absence of positive catalysts. The nearest significant catalyst for the crypto market and riskier assets in general is the release of U.S. inflation data on Thursday.
If inflation gets above the 5% level, riskier assets may find themselves under strong pressure which will be bearish for Bitcoin and other cryptocurrencies. It should be noted that the current analyst consensus calls for Inflation Rate of 4.7% in May, but a negative surprise is possible.
Bitcoin has recently made an attempt to settle below the support at $32,000 but failed to develop sufficient downside momentum and continued to trade in the $32,000 – $35,000 range. RSI remains in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.
If Bitcoin declines below the support at $32,000, it will head towards the next support at $30,000. A successful test of this level will open the way to the test of the support at $29,000. If Bitcoin gets below $29,000, it will move towards the support at $27,500.
On the upside, the previous support level at $35,000 will serve as the first resistance level for Bitcoin. If Bitcoin manages to get above this level, it will head towards the next resistance at $37,000. A move above the resistance at $37,000 will open the way to the test of the resistance which is located at the 20 EMA at $38,000.
From a big picture point of view, Bitcoin remains in a downside trend, and there is a significant risk of an additional sell-off.
For a look at all of today’s economic events, check out our economic calendar.