To Avoid A Sunday Reversal, Bitcoin (BTC) Must Return To $30,000

June

5

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Bitcoin (BTC) increased 0.56 percent on Saturday. Bitcoin finished the day at $29,845, partially correcting a 2.50 percent loss from Friday.

Bitcoin experienced a bearish start, falling to a low of $29,467 in the early morning before finding support. This afternoon, BTC reached an intraday high of $29,954, avoiding the day’s Major Support Levels.

However, bitcoin dropped back into the red after failing to break over the First Major Resistance Level at $30,488 before making a late comeback.

Despite Friday’s nonfarm payroll statistics indicating a more aggressive Fed interest rate trajectory, Saturday’s gains came despite the US nonfarm payroll figures.

The Bitcoin Fear & Greed Index is at an all-time high.

Despite bitcoin’s Saturday rise and the possibility of ending a nine-week losing run, the Fear & Greed Index plummeted today from 14/100 to 10/100.

While the Index sank deeper into the “Extreme Fear” zone, it remained above the 8/100 low set in May.

The regulatory talk was negative for the market, with regulators and legislators pressing for more monitoring.

Governor Christopher J. Waller discussed “Risk in the Crypto Markets” as the weekend approached.

According to the governor, high volatility is the norm rather than the exception, and fraud and theft are common occurrences.

Waller also emphasized the importance of uniform norms for retail users unfamiliar with crypto.

Going into the weekend, South Korean politicians were likewise busy, following the demise of TerraUSD (UST) and Terra LUNA, local media reports that regulators intend to go beyond the Capital Markets Act.

Price Movement Of Bitcoin (BTC)

BTC had dropped 0.45% to $29,712 at the time of writing.

 

Bitcoin rose to an early morning high of $29,882 before dropping to a low of $29,712 in a range-bound start to the day.

Indicators Of Technology

To reach the First Major Resistance Level at $30,045, BTC will have to break past the $29,754 pivot.

To break clear of Saturday’s high of $29,954, BTC will need the support of the entire crypto market.

The Second Major Resistance Level at $30,241 and resistance at $30,500 will be tested if the rally continues. The price of $30,728 is the third primary resistance level.

The First Major Support Level at $29,554 would be tested if the pivot was not moved back through. BTC should avoid sub-$29,000 levels unless there is another prolonged sell-off. The downside should be limited by the Second Major Support Level of $29,267.

It’s a negative indicator based on the EMAs and the 4-hourly candlestick chart (below). Bitcoin is currently trading at $30,051 below the 50-day EMA. The 50-day EMA distanced itself from the 100-day EMA. The 100-day EMA has retreated from the 200-day EMA, and BTC has become bearish.

A break over the 100-day EMA, which is now at $30,260, would support a rise towards $31,000.

About the author, Awi Khan

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