Bitcoin recently tested support at $ 33,500 as it bounced back from $ 40,000 once again. In May, the largest cryptocurrency by market cap lost more than half of its value from an all-time high of $ 65,000. Investors hope BTC will open a new one in June. page and will receive a significant part of the lost positions.
However, the recovery to $ 40,000 appears to have stalled at $ 37,000. Bulls will face several barriers along the way, including the 50 simple moving averages (SMA) and the triangle hypotenuse.
A descending triangle is a bearish pattern that usually marks the start or continuation of a downtrend. At the same time, there are times when the triangle gives a bullish impulse.
A close examination of the four-hour chart reveals unsuccessful attempts to break through the hypotenuse. As such, selling pressure is bound to increase, especially if Bitcoin closes the day below its 50 SMA.
It is important to understand that the descending triangle pattern is a bearish signal. Hence, if selling pressure increases and the price cuts through the x-axis support, the cryptocurrency could face another significant drop to $ 24,000.
The short-term bearish outlook is confirmed by the Relative Strength Index (RSI). This trend strength indicator shows that sellers are gradually strengthening against buyers. If the movement below the centerline towards the oversold side continues, Bitcoin’s downtrend will intensify, threatening to fall by 29%.
On the other hand, Moving Average Convergence Divergence (MACD) has a bullish signal. Consequently, holding above the 50 SMA or the $ 37,000 barrier could allow bulls to focus on gains above $ 40,000.
Daily Bitcoin levels
Spot Rate: $ 36,612
Trend: bearish
Volatility: growing
Support: $ 36,000 and $ 33,500
Resistance: $ 37,000 and $ 40,000
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