The price of Bitcoin BCT / USD has been bouncing above the psychological level of $ 30,000. In daily charts, we have noticed that it has left a double bottom, and has been consolidating above this zone since May 15.
Last week, investors faced a very strong panic when BTC traded below $ 30,000. In fact, it traded below this level for a few hours, but then rallied, giving investors some relief. However, the SMA of 21 that it acts as a dynamic resistance prevented the BTC break the level of $ 35,000.
In the chart, we notice that BTC is under downward pressure as the SMA of 21 exerts pressure. This means that the offer of BTC still prevails. If it continues for a longer time, a fall could occur to the level of 4/8 of murray located at $25,000 and up to $22,000 bottom of the main bearish channel.
On the other hand, Paraguayan legislators plan to present a bill for BTC to become a legal circular currency. This news gave a small boost to BTC last week. The approval will be known on July 14.
The objective of this initiative in Paraguay is to be the center of crypto mining with clean energy, and the capital for investments in cryptocurrencies. It is undoubtedly something encouraging for BTC, but for now, the fears still persist.
The fear and generalized panic on the part of investors has taken hold of the cryptocurrency market. This sentiment is growing every day, as some expect an attempt to raise BTC to liquidate their positions because traders begin to see a probable fall of BTC below $29,000.
Our recommendation is to buy BTC above $31,250, there is 5/8 of murray. This support is not as strong as 4/8 of murray. The medium-term outlook is bullish, so BTC should consolidate above the SMA of 21 about $ 35,000.
Support and Resistance Levels for June 28 – 29, 2021
Resistance (3) 36,458
Resistance (2) 35,000
Resistance (1) 33,789
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Support (1) 31,119
Support (2) 29,661
Support (3) 28,450