Bitcoin (BTC/USD) Price Outlook:
Bitcoin Price Stalls at Resistance – Can BTC Avoid Range-Bound Trading?
Bitcoin has been on a wild ride recently as the cryptocurrency surged to record highs before plummeting to its lowest level in months all in the matter of a few weeks. The digital currency’s initial gains were established amid broad corporate adoption and support from corporate celebrities like Elon Musk, Mark Cuban and Michael Saylor. The unraveling began as regulatory and taxation concerns emerged alongside Musk’s critique of Bitcoin’s energy usage.
Bitcoin (BTC/USD) Price Chart: Daily Time Frame (December 2020 – June 2021)
Since volatility is a two-way street, losses were swift and fierce as sentiment shifted and the coin plummeted from $65,000 to $30,000 in a matter of weeks. As it stands, Bitcoin trades between two major technical levels with resistance near $43,000 and support at $30,000. While a successful bounce off the $30,000 mark in mid-May may have been encouraging in the grander scheme of things, Bitcoin will have to avoid deeper declines to curtail the continuation of lower-lows and lower-highs – a trend that began in mid-April.
Bitcoin (BTC/USD) Price Chart: 4 – Hour Time Frame (February 2021 – June 2021)
This week, however, Bitcoin has enjoyed modest gains with bulls taking aim at resistance around $43,000. A breach above the zone could allow for further gains but until such a move is posted, Bitcoin may be at risk of slipping into range-bound price action that given seasonal headwinds.
On the other hand, a break beneath $30,000 would mark another significant downgrade in the technical outlook and would open the door to deeper losses. Either way, making directional forecasts is difficult at this stage as the risk-reward profile is unattractive. In the meantime, follow @PeterHanksFX on Twitter for updates and analysis.
–Written by Peter Hanks, Strategist for DailyFX.com
Contact and follow Peter on Twitter @PeterHanksFX