The conquest of $38,000 3 days ago, will have been short-lived. The consolidation of the Bitcoin (BTC) price in the $30,000 – $40,000 area continues, as 2 analysts suggest 2 key levels to watch for a resumption of the bullish rally.
38,000 lost, Bitcoin in the red in the very short term
Bitcoin came close to $36,000 twice on June 11, 2021. BTC then attacked $37,560, before losing $37,000 again. Bitcoin is trading at $36,853 at the time of this writing.
The push above $38,000, ultimately failed to make a decisive conquest that would signal the resumption of the bullish rally. Pending a breakout of $40,000, trader Rekt Capital believes that $38,000 is the level to watch, and should be turned into support. This level would be crucial “in the current consolidation cycle”.
With the daily and monthly RSI(14) standing at 43 and 45, the BTC markets are in a selling zone during these periods, although bear pressure remains relatively low based on these indicators. The monthly RSI(14) is above 60. BTC remains bullish over longer periods.
PlanB charts a recovery path
PlanB continues to believe in a $100,000 Bitcoin in 2021, while Stock-to-Flow projects an average price of $100,000 or $288,000 between now and 2024. The recent crash and a Bitcoin that has been trading between $30,000 and $40,000 for over 3 weeks, however, raises questions about the very basis of PlanB’s predictions.
PlanB believes that if Bitcoin closes June at least at $54,000, as it did in July and August, the 50-day moving average would exceed the 200-day moving average and remain above it. Such a scenario would then allow for a sustained upswing in the coming months.
Some are enjoying the plunge in the BTC price to buy it at a lower price, while others prefer to cheer El Salvador’s plunge in Bitcoin and its hot idea to mine BTC. The bears remain in control of the $38,000 – $40,000 area for now. The recovery will be gradual without burning out.