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6 HOURS AGO
The price of Bitcoin dropped below $34,000 as traders look to the next levels of support.
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MARKET ANALYSIS
The price of Bitcoin (BTC) fell below $34,000 on major exchanges including Binance as the cryptocurrency market's corrective phase continues.
Large inflows of Ether (ETH) into exchanges were spotted before the latest downturn, suggesting that ETH whales might have led the most recent sell-off in the market.
Bitcoin 1-day price chart (Binance). Source: TradingView
In the near term, the major macro level for Bitcoin and Ether remain at $30,000 and $2,000, respectively.
According to traders like TraderKoz, if Bitcoin can remain above $37,000 throughout the weekend and recover to around $37,500, the chances of overtaking $42,000 become high.
The $42,000 level is currently the major resistance area, and rallying above that would increase the chances of a newfound rally.
However, if Bitcoin remains below $37,000, the likelihood of a range between $30,000 and $35,000 would increase sharply in the short term.
Referring $37,000 as the "midrange" for Bitcoin, TraderKoz wrote:
"We had a nice daily open dump leading to a sweep and reclaim of yesterday's d/o If we can flip the midrange, I like our chances of pushing to 42k."
Eugene Ng, the head of business development in Asia at Gemini said that systematic algorithms turned short and during the weekend, Bitcoin and Ethereum are likely to see bigger drops to previous lows.
He said:
"Systematic algos have turned short in an illiquid weekend. Expect a retest of lows in $BTC and $ETH in the next 24 hours. Remember to set some buy limits when that happens. AlphaLeak."
The market has been weaker than many traders expected, as technical analysts anticipated consolidation until the U.S. and London markets opened on Monday.
It is crucial for Bitcoin to retain the $33,000 support level to avoid another test of the $30,000 support area in the near term
On May 21, analysts at Whalemap identified $39,931 as a large whale cluster after spotting inflows of around 115,000 BTC.
Hence, to recap, $33,000 and $35,000 remains crucial support levels in the near future, while $39,931 and $42,000 are the major resistance levels.
But, one silver lining in the market is that Bitcoin miners are currently not selling, according to trader Lex Moskovoski.
He wrote:
"Bitcoin miners aren't selling now. We had a small spike in selling pressure from them 3 days ago but it's back to normal now. Data from both Glassnode and Cryptoquant. Whatever selling pressure we're having now is completely on us."
