BTC/USD as of this writing is below 29,000.00 at the start of this weekend. BTC/USD hit a low near 25,500.00 on the 9the of May. Bitcoin’s decline is unsurprising, given the strong downtrend that has been demonstrated time and time again since November 2021. The start of April saw a new attack emerge lower, after a brief rise from from mid-March. which ran out of speculative fuel, and the drop generated more power in May.
While a correlation between cryptocurrency markets has been significant when technical charts are compared to US stocks, a bit more dangerous sentiment can rise in Bitcoin and other cryptocurrencies. The speculative zeal that has been driving Bitcoin seems to be evaporating. Yes, we have seen this show before. Excessive exuberance has led to historic highs followed by jaw-dropping falls. Long-term traders and BTC/USD holders may feel calm as the cryptocurrency flirts with lows not seen since late December 2020, but short-term speculators who keep trying to catch the next wave may have difficulties.
BTC/USD’s inability to stay above 30,000.00 is troubling. Over the past couple of days, Bitcoin has started to break through the 29,000.00 ratio low again. The behavioral feeling remains ultra-fragile. Yes, a sudden storm of buying could easily sweep away technical resistance and new highs may be generated, but that ambition doesn’t seem as realistic compared to the potential that Bitcoin could actually continue lower.
If BTC/USD were to break below the 28,000.00 level and not be able to climb above that mark for a few days, it could trigger additional selling. Long-term technical charts can be viewed to try to decipher what will happen next and what hurdles, if broken, will boost sales. The problem BTC/USD faces is the possibility of speculative buyers remaining in short supply and not reacting to technical charts. Some traders may believe for the time being that profits are going to be made by pursuing short positions.
BTC/USD outlook for June
The speculative price range for BTC/USD is 18,881.00-39,990.00.
As June gets ready to kick off, speculators will need to prepare for more volatile days with BTC/USD. Some traders may have thought that April produced the worst on record for downside momentum, but May turned out to be worse. The long-term downtrend for BTC/USD remains clear and betting against it could be dangerous and costly.
Traders who intend to short BTC/USD and believe that further price erosion will occur in the coming weeks cannot be blamed. If BTC/USD breaks below the 28,600.00 mark and sees more vulnerable support levels cleared away, speculators could aim for the 28,200.00 mark. Recall that during the second week of May, the drop in price velocity quickly brought Bitcoin back to the 25,500.00 level. The fact that BTC/USD has not made a significant reversal to the upside and remains in a dangerous price range that highlights weakness is important.
If BTC/USD breaks below 28,000.00 and experiences heavy trading, new lows could develop quickly. Traders should be prepared for significant volatility should BTC/USD break below 26,000.00.
Speculators who insist on chasing the upside via buy positions should use take profit orders to cash in higher reversals than they want. The 29,000.00 mark could easily be targeted if trading persists below this level as a buy. However, traders are encouraged to watch the price of BTC/USD and not look for resistance levels to break down. Yes, BTC/USD could move to 30,000.00 and go higher. The 32,000.00 mark is achievable. Traders should remember that the last time the 35,000.00 mark was seen was briefly in early May. Short-term bullish speculators need to stay realistic about their targets in the coming weeks.