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Bitcoin Video 06.08.21.
Bitcoin remains under pressure
Bitcoin has managed to drop below the key support level at $ 35,000 and is testing the next support at $ 32,000. Other cryptocurrencies are also on the decline.
Ethereum gained momentum on the downside after successfully settling below the 50 EMA at $ 2,645. Currently, Ethereum is trying to settle below $ 2,500. Dogecoin fell below its 50 EMA at $ 0.3490 and attempted to settle below $ 0.3150.
The market mood is clearly bearish in the absence of positive catalysts. The closest major catalyst for the crypto market and riskier assets in general is the release of US inflation data on Thursday.
If inflation exceeds the 5% level, riskier assets may come under strong pressure which will be bearish for Bitcoin and other cryptocurrencies. It should be noted that the current analyst consensus is for an inflation rate of 4.7% in May, but a negative surprise is possible.
Technical analysis
Bitcoin recently attempted to move below the $ 32,000 support, but failed to develop sufficient bearish momentum and continued to trade in the $ 32,000- $ 35,000 range. The RSI remains in moderate territory, and there is plenty of room to gain further bearish momentum in case the right catalysts emerge.
If Bitcoin falls below the support at $ 32,000, it will head to the next support at $ 30,000. A successful test of this level will pave the way for testing the support at $ 29,000. If Bitcoin drops below $ 29,000, it will move to the support at $ 27,500.
On the upside, the previous support level at $ 35,000 will serve as the first level of resistance for Bitcoin. If Bitcoin manages to break above that level, it will head to the next resistance at $ 37,000. A break above the resistance at $ 37,000 will pave the way for the resistance test which is located at the 20 EMA at $ 38,000.
From a global perspective, Bitcoin remains in a downtrend, and there is a significant risk of further selling.
The story continues
For an overview of all of today’s economic events, check out our economic calendar.
This article originally appeared on FX Empire
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