The price of Bitcoin (BTC) continues to fall as traders in the US go to the grill on May 31st to enjoy the upcoming Memorial Day holidays and regulated futures and options markets like the CME are closed over the weekend.
Data from Cointelegraph Markets Pro and TradingView show that after a brief attempt by Bitcoin (BTC) bulls to rise above $ 37,000 in the early hours of May 29th, the price fell below $ 34,000 as the price was set to rise required support not manifested.
The price movement for Ether (ETH) was almost identical to that of BTC. The attempt to break above USD 2,500 met fierce resistance which brought the price of the altcoin down to USD 2,300.
$ 37,500 or bust
According to an analysis by filbfilb, co-founder of Decentrader, Bitcoin’s price movement is a major cause of market confusion as it is far from the 20-week moving average (WMA), which is usually the line between Bitcoin and a bull – or bear market and as such remains a bearish scenario for Bitcoin. “
The analyst went on to say that if Bitcoin can find solid support in the low $ 30,000, the 20 WMA could become a major area of resistance on any attempt to move higher.
“A decline would likely make the low $ 20,000 or the 78.6% retracement a likely target. Therefore, a price move in the next week is particularly important. “
At this point, according to filbfilb, it is vital for BTC to reclaim $ 37,500 “to avoid retesting weekly support”.
Should Bitcoin manage to rally and break above USD 40,000, filbfilb identified the previous support / resistance zone at USD 45,500 to USD 46,500 as the next area of resistance to be overcome.
Ether draws the line at $ 2,300
Ether performed slightly better than BTC after selling back to the 61.8% retracement as the price climbed back above the 20 WMA, but was eventually rejected at the $ 3,000 “critical pivot price” when the recovery momentum slackened.
Filbfilb identified $ 2,300 as an important area of support for ether that would need to be held if bulls were to gain momentum to break above the $ 3,000 level and retest the $ 3,300 level, this scenario being largely “on the strength of Bitcoin depends “.
Overall, the analyst expects Ether to outperform BTC with every upward movement and “at least keep up with every downward movement”.
“Right now, eyes are on Bitcoin to see if the lows can be held through the weekend, with special attention paid to the 200 DMA that is currently the line in the sand for the bulls.”
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