Bitcoin cryptocurrency rate keeps dropping and has already gone beyond the line of the upward trend that arose on March 13. As a result, BTC/USD should become cheaper by $ 8,100 by June 2.
Key Points
- There are powerful resistance barriers at $ 9,000 and $ 9,100.
- A bearish trend line has formed with resistance in the region of $ 9,050.
- If the downward trend continues, the price of the asset will drop to $ 8,650 over the next two sessions.
On May 21, sellers broke through the support zone of $ 9000, and the BTC/USD fell from $ 9,581 to $ 8,645 (Bitstamp data). From May 22 to May 24, buyers overcame the $ 9,000 mark three times, but could not fix above this level. Therefore, a new downward movement arose, as a result of which the value of cryptocurrency decreased from $ 9,283 to $ 8,691.
A bearish trend line has already formed on the chart with resistance at around $ 9,050, which is approximately 61.8% Fib during the dump of the BTC from $ 9,283 to $ 8,691. The key resistance zone is located at around $ 9,100. Thus, a reversal in the BTC market is only possible if the bulls break through $ 9,100. The following barriers are at the levels of $ 9,330, $ 9,800, and $ 9,950.
What Level Will The Bitcoin Rate Drop To?
Most likely, the bulls are not going to break through the $ 9,100 barrier; in this regard, the coin will become cheaper. Immediate support is located in the zone of $ 8,800. Successfully overcoming this barrier will mean a further reduction in the value of the asset to $ 8,500.
On May 25, the dynamics of BTC price changes went beyond the bullish trend of March 13. If the asset rate fluctuates within a downtrend, then the value of Bitcoin will not exceed $ 9,000, and by June 2 it will drop to at least $ 8,100.
BTC/USD crossed the line of the bearish trend that arose in June 2019 three times, and each time fell sharply, returning to the established framework. Given this fact, together with historical data, it can be assumed that in 2020, Bitcoin will update its two-year bottom in the region of $ 4,000.
Technical indicators:
- 4 hours MACD is in the bullish trend zone.
- 4 hours RSI is above 40 (in the neutral area).
- The main support level is $ 8,650.
- The main resistance level is $ 9,100.
- The nearest pivot points are $ 8,622 and $ 9,117.
Source: en.bit.news
