Analyst says reclaiming $37,500 is Bitcoin’s crucial ‘line in the sand’


Bitcoin (BTC) price continues to limp lower as traders in the U.S. hit the BBQ to enjoy the upcoming Memorial Day holiday on May 31 and regulated futures and options markets like the CME are closed through the weekend.Data from Cointelegraph Markets Pro and TradingView shows that after a brief attempt by Bitcoin (BTC) bulls to rally above $37,000 in the early morning hours on May 29, the price has tumbled below $34,000 as the support needed for a move higher failed to manifest. BTC/USDT 4-hour chart. Source: TradingViewPrice action for Ether (ETH) was nearly identical to that of BTC, with an attempt to break above $2,500 met with stiff resistance that pushed the altcoin’s price down to $2,300. $37,500 or bustAccording to analysis from filbfilb, co-founder of Decentrader, Bitcoin’s price action is a major source of  the market’s confusion as it remains a ways away from the 20 Week Moving Average (WMA) “which is typically the line between Bitcoin being either in a bull or bear market and as such remains a bearish scenario for Bitcoin.”Bitcoin 4-hour chart. Source: DecentraderThe analyst went on to further state that if Bitcoin is able to find solid support in the low $30,000s, the 20 WMA could turn into a major resistance zone in any attempt to move higher. Filbfilb said:“A drop lower would likely make the low $20,000s or the 78.6% retracement a likely target. As such, price action over the next week is particularly important.”At this point, according to filbfilb, it is crucial for BTC to reclaim $37,500 “to avoid a retest of weekly support.” Should Bitcoin manage to stage a rally and break above $40,000, filbfilb identified the previous support/resistance zone at $45,500 to $46,500 as the next area of resistance that will need to be overcome. Ether draws the line at $2,300Ether performed slightly better than BTC after it sold off back to the 61.8% retracement as the price was able to bounce back above the 20 WMA, but was ultimately rejected at the “critical pivot price” of $3,000 as the recovery momentum faded. ETH/USD 4-hour chart. Source: DecentraderFilbfilb identified $2,300 as an important area of support for Ether that would need to be held if bulls wanted to gather momentum for an attempt to break above the $3,000 level and retest $3,300, with this scenario be highly “dependent upon the strength of Bitcoin.”Overall, the analyst expects that Ether will outperform BTC in any upside move and “at least match any bearish movement.”He said, “For now, eyes are on Bitcoin to see if the lows can be held going into the weekend, with particular attention being around the 200 DMA which is currently the line in the sand for the bulls.”The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Avatar

Related Articles

- Advertisement -

Latest Articles

bitcoin
Bitcoin (BTC) $ 26,979.23
ethereum
Ethereum (ETH) $ 1,877.26
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 279.54
usd-coin
USD Coin (USDC) $ 1.00
xrp
XRP (XRP) $ 0.529613
staked-ether
Lido Staked Ether (STETH) $ 1,877.30
cardano
Cardano (ADA) $ 0.347174
dogecoin
Dogecoin (DOGE) $ 0.069663
solana
Solana (SOL) $ 20.20
matic-network
Polygon (MATIC) $ 0.811192
tron
TRON (TRX) $ 0.078611
litecoin
Litecoin (LTC) $ 90.31
polkadot
Polkadot (DOT) $ 5.15
avalanche-2
Avalanche (AVAX) $ 14.54
binance-usd
Binance USD (BUSD) $ 1.00
shiba-inu
Shiba Inu (SHIB) $ 0.000008
dai
Dai (DAI) $ 1.00
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 27,002.23
uniswap
Uniswap (UNI) $ 4.76
leo-token
LEO Token (LEO) $ 3.51
chainlink
Chainlink (LINK) $ 6.20
cosmos
Cosmos Hub (ATOM) $ 10.06
okb
OKB (OKB) $ 45.16
monero
Monero (XMR) $ 146.47
ethereum-classic
Ethereum Classic (ETC) $ 17.42
the-open-network
Toncoin (TON) $ 1.67
stellar
Stellar (XLM) $ 0.089414
bitcoin-cash
Bitcoin Cash (BCH) $ 114.56
lido-dao
Lido DAO (LDO) $ 2.36
true-usd
TrueUSD (TUSD) $ 0.999867
internet-computer
Internet Computer (ICP) $ 4.36
filecoin
Filecoin (FIL) $ 4.34
quant-network
Quant (QNT) $ 115.82
aptos
Aptos (APT) $ 8.11
hedera-hashgraph
Hedera (HBAR) $ 0.049632
crypto-com-chain
Cronos (CRO) $ 0.059687
arbitrum
Arbitrum (ARB) $ 1.18
near
NEAR Protocol (NEAR) $ 1.51
vechain
VeChain (VET) $ 0.018576
apecoin
ApeCoin (APE) $ 3.01
the-graph
The Graph (GRT) $ 0.118002
paxos-standard
Pax Dollar (USDP) $ 0.999575
frax
Frax (FRAX) $ 0.999526
eos
EOS (EOS) $ 0.886058
algorand
Algorand (ALGO) $ 0.135351
the-sandbox
The Sandbox (SAND) $ 0.520231
rocket-pool
Rocket Pool (RPL) $ 48.71
optimism
Optimism (OP) $ 1.47
elrond-erd-2
MultiversX (EGLD) $ 36.42