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Bitcoin  Market Analysis – 31.05.2021

We’ve seen a lot of downside moves across the BTC market over the past two weeks as tighter regulations and environmental concerns cast a shadow on Bitcoin. What we have now, is a failed cycle low, indicating that the uptrend may take longer time to resume.

Bitcoin is struggling to sustain any price level during the current pullback, indicating a lack of demand at higher levels. Does this mean that the bull trend is over and the institutional investors are abandoning the crypto markets?  There is no definite answer to this, especially when one looks at the market and price dynamics at the moment. Yes, I know most institutional investors have held firm and vowed to continue holding onto their crypto but the price indicators suggest the situation remains precarious. The correction to $30,000 on May 12 culminated with $12 billion worth of futures long positions being liquidated, and to date, trader’s confidence remains somewhat dampened.

There’s been a lack of “we bought the dip” announcements. All of this has left retail traders worrying that BTC could suffer further declines. We’re in a difficult situation here and we’re in a market of low clarity. Has Bitcoin price bottomed yet? No! let’s hope to see that before making any assertion on possible reversal.

Even though Altcoins joined Bitcoin in its plunge, some Altcoins could rally higher over the coming days if Bitcoin price can sustain within the $30,000 to $33,000 support zone.

Looking at the BTC daily chart, a downward trend up to 60-day cycle low in place with a series of lower lows and lower highs, indicating that we’re in a down trend. Bitcoin’s brief breakout could not clear the hurdle at the 200-day MA ($41,014) on May 26 and 27, indicating the bears are defending this level aggressively due to a failed cycle low.

Let’s hope that, the price turns up from the current level and rises above the 200-day MA to clear the path for a possible rally into right translated cycle.

As for now, the bears are still in control.

Pic.1: A series of lower lows and lower highs, indicating a down trend.
Source: Paid Content by Peter Brendt and his partners at bitcoin.live

Looking at the BTC weekly chart, the BTC has lost the 10-week MA. BTC is down with 63%, the bears are still sustaining the momentum to prolong any possible resurgence as it continues to flip the EMA 8 into resistance.
Any outcome is possible right now.

Pic.2: The BTC has lost the 10-week MA indicating a downtrend structure. Source: bitcoin.live

From the BTC monthly chart, BTC lost a 10-month moving average (MA). We couldn’t see a similar trajectory to 2017 of a reversal pattern and making it to look like further downside could be in store.

Pic.3: The BTC has lost the 10-month MA indicating a downtrend structure. Source: bitcoin.live

🔴This Market Update is created using Paid Content by Peter Brendt and his partners at Bitcoin.live. Peter Brendt is a Trader since 1975. Author and publisher of the Factor Report as well as Best Selling Trading Books. If you want to read full content by him and his partners, trading signals/calls in real time, daily/weekly/monthly reports, trading videos and podcasts, trading tips check out his VIP Subscription Service


🔴This Market Update is created using Paid Content by Peter Brendt and his partners at Bitcoin.live. Peter Brendt is a Trader since 1975. Author and publisher of the Factor Report as well as Best Selling Trading Books. If you want to read full content by him and his partners, trading signals/calls in real time, daily/weekly/monthly reports, trading videos and podcasts, trading tips check out his VIP Subscription Service