Bitcoin, Ethereum and Dogecoin — Daily Technical Analysis | 31.05.2021
Bitcoin price failed to clear the $37,000 resistance against the US Dollar. BTC is declining and it remains at a risk of more losses below $34,000.
Bitcoin is facing a lot of hurdles near the $36,000 and $37,000 resistance levels. The price is currently trading well below $37,000 and the 100 hourly simple moving average. There is a key bearish trend line forming with resistance near $36,000 on the hourly chart of the BTC/USD pair. The pair could decline heavily if it settles below the $34,000 support and $33,200.
On the upside, immediate resistance is near the $35,500 level. The first major resistance is near the $36,000 level and the trend line. The next major resistance is near the $37,000 level.
A close above the $37,000 resistance zone could open the doors for a steady increase. The next major barrier for the bulls is near $40,000 level.
If bitcoin fails to clear the $36,000 resistance, there is a risk of a downside break. Initial support on the downside is near the $34,500 level.
The first major support is near the $34,000 level. If there is a downside break below the $34,000 support, the price could decline towards the $32,000 support zone in the coming sessions. Any more losses could clear the path for a test of the $30,000 level.
Dogecoin’s pullback in late April led to the emergence of a support line of $0.239 and the same might be called into action in case of a breakdown from $0.309. A sharper pullback would highlight defensive zones at $0.146 and $0.08- levels last seen in April. OBV’s downtrend highlighted the dearth of buying pressure over the past few days.
Lack of strong volumes across exchanges led to weaker price action, as opposed to those levels seen during early May. While it was possible that DOGE could be in accumulation, buyers would likely reenter at slightly lower levels considering the demand zone between $0.146-$0.08.
Ethereum would need to move through the pivot at $2,458 to bring the 38.2% FIB of $2,740 and the first major resistance level at $2,844 into play.
Support from the broader market would be needed, however, for Ethereum to break out from the 38.2% FIB.
Barring an extended crypto rally, the first major resistance level and resistance at $3,000 would likely cap any upside.
In the event of an extended breakout, Ethereum could test resistance at the 23.6% FIB of $3,369 before any pullback. The second major resistance level sits at $3,299.
Failure to move through the pivot at $2,458 would bring the first major support level at $2,002 into play.
Barring another extended sell-off in the week, Ethereum should steer clear of the 62% FIB of $1,725. The second major support sits at $1,616.
At the time of writing, Ethereum was down by 3.44% to $2,305.51. A mixed start to the week saw Ethereum rise to an early Monday high $2,415.47 before falling to a low $2,288.13.
Ethereum left the major support and resistance levels untested at the start of the week.