The price of Bitcoin (BTC) continues to decline as traders in the US barbecue to enjoy the upcoming Memorial Day holiday on May 31 and regulated futures and options markets such as the CME are closed during the weekend.
Data from Cointelegraph Markets Pro and TradingView shows that after a brief attempt by Bitcoin (BTC) bulls to break above $ 37,000 in the early morning of May 29, the price fell below $ 34,000 already. that the support needed for a higher move was not manifested.
BTC / USDT 4-hour chart. Source: TradingView
The price action for Ether (ETH) was almost identical to that of BTC, with an attempt to break above $ 2,500 it encountered stiff resistance that pushed the price of the altcoin to $ 2,300.
$ 37,500 or bust
According to analysis by filbfilb, co-founder of Decentrader, Bitcoin’s price action is a major source of confusion in the market, as it is still a long way from the 20-week moving average (WMA), which is usually the line between Bitcoin in a bull or bear market and as such is still a bearish scenario for Bitcoin. ”
Bitcoin’s 4-hour chart. Source: Decentrader
The analyst went on to state that if Bitcoin can find solid support at the low $ 30,000, the 20 WMA could become a major resistance zone in any attempt to move higher.
“A lower drop would likely make the $ 20,000 low or 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 that BTC recovers $ 37,500 “to avoid a retest of weekly support.”
If Bitcoin manages to rally and break above $ 40,000, filbfilb identified the previous support / resistance zone at $ 45,500 to $ 46,500 as the next resistance area that will need to be broken.
Ether draws the line at $ 2,300
Ether performed slightly better than BTC after it sold again to the 61.8% retracement as the price was able to rally above 20 WMA, but was eventually rejected at the “critical pivot price” of $ 3,000 when the recovery momentum vanished.
ETH / USD 4-hour chart. Source: Decentrader
Filbfilb identified $ 2,300 as a major support area for Ether that should hold if the bulls wanted to gain momentum to attempt to break above the $ 3,000 level and retest $ 3,300, with this scenario highly “dependent on the strength of Bitcoin”.
Overall, the analyst expects Ether to outperform BTC on any bullish move and “at least match any bearish move.”
“For now, eyes are on Bitcoin to see if the lows can be held through the weekend, with a focus on around 200 DMA, which is currently the line in the sand for bulls.”
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