Yesterday the price of Bitcoin (BTC / USD) extended its losses after reaching the psychological level of 40,000, and remained with a bearish signal shortly after the Chairman of the Federal Reserve, Jerome Powell, announced that the Fed would move up its timeline for rate hikes and would schedule two interest rate hikes in 2023.
This downward movement of BTC in a daily chart could be viewed as a correction to accumulate more upward force, since the key support level where the SMA of 21 acts as a strong floor is the area of 36,766. If Bitcoin remains above this level, the price increase is expected to zone of the EMA 200.
Yesterday the price of Bitcoin approached a key support level of 2/8 of murray located at 37,500. A little lower at 36,700 is the dynamic support of the 21 SMA, which is also supporting Bitcoin. A bounce from these levels will be considered a good opportunity to buy.
If you look at the daily chart, BTC has managed to enter above the bearish channel support. Now it has a little more scope to move between 36,700 and 42,780 and to the top of the bearish channel at the psychological level of $ 50,000.
The yellow highlighted area is the probable movement of Bitcoin BTC / USD for the next few days. It is expected that there will be a good buying opportunity in the 36,766 zone (21 SMA) and a good selling opportunity in the resistance zone of 42,700 (EMA 200).
The technical reading of the eagle indicator in daily charts shows that it is moving away from the oversold zone and pointing to a bullish signal. So, probably in the medium term Bitcoin is expected to reach the mark of $50,000 and up to $64,000.
Our recommendation is to buy above 37,000 and sell below 43,000 a price range for the next few days.
Support and Resistance Levels for June 17 – 20, 2021
Resistance (3) 42,731
Resistance (2) 41,160
Resistance (1) 39,756
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Support (1) 36,818
Support (2) 35,444
Support (3) 33,680
The material has been provided by InstaForex Company - www.instaforex.com