Bitcoin has struggled to break over, and after a minor rally over the weekend, it has been unable to maintain the momentum, and is presently trading at $34,000.
This week is expected to be full of market-defining events, including the projected reduction in hash rate and possible testing of major resistance and support levels.
After a weekend that raised hopes that Bitcoin would make a return, the top cryptocurrency has dropped again again this week. According to our statistics, BTC has dropped almost 3% in the last 24 hours, trading around $34,350. A number of events in the coming week could have a significant impact on its future, one of which is whether it can break over its 50-day simple moving average. Analysts also expect that there will be another hash rate decline, which will have an impact on the leading cryptocurrency.
During the early hours of Saturday, Bitcoin was trading as low as $33,235. It did, however, produce a rally that propelled it to $35,907, its highest level since Tuesday. It did, however, open the week with an intraday low of $34,089.
While the weekend surge was encouraging, it did have one peculiarity: it occurred during a period when trade activity was declining. As shown in the data below from Bitcoinity, the volume over the weekend was one of the lowest in the last month.
Bitccoinity provided the data.
According to chartists, this is why the rally was unsustainable, which explains the current slump. The volume has yet to rebound, falling by 4.4 percent in the last day to $24.9 billion.
In a quicktake, CryptoQuant’s on-chain experts stated: “BOTH inflow and outflow are drying out with the market’s trading activity.” The whales appear to be remaining low and uninterested. A strong push to either side of the market would almost certainly result in a significant price reaction.
Support and resistance levels for Bitcoin
Bitcoin climbed to little under $36,000 over the weekend. BTC would have garnered enough momentum to continue increases if it had been able to shot above this level, according to one analyst. The analyst, who goes by the moniker Rekt Capital, stated: “Once BTC clears $36000… the next key obstacle will be the $38000 level.”
The next major resistance level to watch at its current price is $34,570, which it has been flirting with all day. Its 20-day simple moving average is shown here. Following that, the $35,600 mark, which has been the flagship crypto’s weekly barrier, will be crucial.
If it can clear this, BTC will be set up for a break out that might take it past $40,000 for the first time since June 16th if it can cross the 50-day simple moving average at $36,375.
On the other hand, if BTC breaches $34,000, the next support level is $32,700, which it established in the early days of this month.
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