On June 22, Bitcoin reached the $28,800 mark and managed to bounce back to the local support area. During the following week, the cryptocurrency tried to find a solid bottom and moved to the main range support level in the area of $34,000. Yesterday, June 29, Bitcoin finally consolidated and overcame the key area at the turn of $34,700. However, further movement to the next key mark of $40,200 was interrupted by a resistance zone around $36,000.
Bitcoin was close to successfully consolidating above the $36,000 mark due to a favorable start to the week. The cryptocurrency managed to finish last week above the important horizontal support level of $32,600. This is an extremely important zone, which is an important indicator for investors since the coin has never crossed this milestone in 2021. In addition, at the end of the previous week, a hammer pattern was formed on the charts, which is considered a bullish signal. All of the above was the reason that the market allowed BTC to successfully overcome the $34,000 mark. Then the cryptocurrency continued to move to the next resistance zone in the area of $36,600 with the aim of further retesting the key level of $40,200.
However, Bitcoin failed to gain a foothold above the $36,600 mark, and the quotes of the BTC/USD pair crept to the main support zone around $34,000. As of 11:00 UTC, the cryptocurrency is quoted around $34,800, having fallen in price by 3% over the day. At the same time, the local dynamics of the price movement indicates a local bearish mood (+0.5%). Other technical indicators show a single picture. The MACD indicator drops to the red line and indicates a bearish sentiment. A similar dynamics is demonstrated by the RSI indicator, which, after a jump into the zone between 50 and 70, slipped beyond the 30 mark. This indicates a lack of clear interest in the asset.
Despite the clearly bearish mood in the market, Bitcoin has a chance to once again approach the $36,600 mark. However, such a scenario will be possible only if a bearish absorption candle is not formed on the Bitcoin charts, which will become an obvious bearish indicator. The market urgently needs a clear signal to buy, otherwise, the coin has every chance to test the next bearish limit at $32,800. This is because most of the current social activity in the BTC network is made up of retail traders who rely on short-term operations. This is reported by JPMorgan experts. The reduction in the share of institutions in Bitcoin also puts pressure on the asset quotes, since large companies are more consistent and are not subject to impulsive decisions.
The analysis of futures indicates a possible start of a bullish trend in the medium term. The bears took advantage of the increased trading volumes to push the price below $34,000, but the bulls bought the offer and continued to push the rate up. Despite the formation of an ascending triangle, it is important for Bitcoin to break through the $36,600 - $37,200 zone and successfully bounce back to the key support level. The news background remains mostly positive, and therefore the movement of BTC/USD quotes depends more on the behavior of market participants.
The material has been provided by InstaForex Company - www.instaforex.com