Updated: 06/03/2021 13:12
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bitcoin shows signs of plunging to 28k
Bitcoin price prediction highlights BTC’s consolidation extension while it remains pivotal at the $38000 price range Bitcoin has formed a bearish
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Bitcoin price prediction highlights BTC’s consolidation extension while it remains pivotal at the $38,000 price range. Bitcoin has formed a bearish pennant suggesting the crypto might drop towards the $28,000 price region soon. Despite its misfortunes, preparations for Bitcoin’s 2021 Convection are still underway, with over 21,000 participants confirmed.

The crypto market has started the day on the green today, June 3, with Bitcoin prices currently hovering around the $38,800 price region. At present, Bitcoin dominance in the market stands at about $42 percent, a decline of about 0.5 percent over the day.

Since the start of June, Bitcoin’s price movement has registered a bullish start, with the crypto coin surging by about 9 percent since June 1. If Bitcoin continues with such a similar bullish trend, the number one crypto coin could rally past the $46,500 price region or record a 20 percent upsurge from its current $38,800 price tag.

However, for Bitcoin to realize this milestone, it has to break above two crucial resistance levels. The first resistance level investors need to consider is the first supply barrier at around $41,900, which also happens to be the axis of the right shoulder and the supply zone. The supply zone extends from $43,000 to about $46,630.

While it is unlikely for Bitcoin to close the day above the 12-hour candlestick around the $46,630 price region, the king crypto could register a significant price rally. On the other hand, if the number one cryptocurrency fails to close the day above the $34,049 region decisively, all the bullish prospects will go down the drain.

Although Bitcoin is currently recording positive price movements, the crypto has been sideways trading for several days around the $38,000 price region. This trend saw Bitcoin lose its upward momentum towards the $40,000 mark, while its immediate $36,000 support line was coming into play several times.

Additionally, it is evident on the 24-hour price chart that Bitcoin’s price movement has formed a reversal and continuation pattern better known as a pennant pattern. Due to this, the number one cryptocurrency could see its fortunes dwindle if the pattern matures. This will automatically send Bitcoin prices to levels under $30,000 towards $27,000. It is worth noting that pennant patterns usually last for as little as one to three weeks.

It is evident that the Moving Average Convergence Divergence (MACD) indicator shows Bitcoin is currently in favor of the bulls. This comes from Bitcoin’s gradual price movement that saw it move from May’s -4,389 low to levels above the 0.00 mean line. Therefore, it is worth noting that the MACD technical indicator currently paints a bullish picture favoring the bulls. If Bitcoin maintains the current trend, the number one crypto asset could gradually resume its price rally as the bulls retest the $40,000 price region.

Despite Bitcoin’s volatility, it appears some investors are capitalizing on the coin’s misfortunes. For instance, the number of whales holding between 100 and 10,000 Bitcoin tokens increased by roughly 30,000 during Bitcoin’s plunge on the last week of May. Similarly, it has been confirmed that more than 20,000 individuals will be in traveling to Miami for the Bitcoin 2021 Convection, the largest-ever Bitcoin conference.

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