An analyst says reclaiming $ 37,500 is Bitcoin’s ultimate goal.

The price of Bitcoin (BTC) continues to fall while American traders take a break to enjoy the upcoming Memorial Day, On May 31st, regulated futures and options markets like the CME are closed for the weekend.

Data from Cointelegraph Markets Pro Y. TradingView show that after a brief attempt by Bitcoin (BTC) bulls to break above $ 37,000 in the early hours of May 29th, The price fell below $ 34,000 as the support needed for an upward move failed to manifest.

4-hour chart of the BTC / USDT pair. Fountain: TradingView

The price movement of Ether (ETH) was almost identical to that of BTC, with an attempt to break above USD 2,500 it encountered fierce resistance which pushed the price of the altcoin down to USD 2,300.

$ 37,500 or the price will drop

An analyst says reclaiming $ 37,500 is Bitcoin’s ultimate goal.
An analyst says reclaiming $ 37,500 is Bitcoin’s ultimate goal.

After analyzing filbfilb, Co-founder of Decentrader, Bitcoin’s price movement is a major source of market confusion as it is still far from the 20-week moving average (WMA). This is usually the boundary between Bitcoin and the bull or bear market is still a bearish scenario for Bitcoin. “

Bitcoin 4 hour chart. Fountain: Decentrader

The analyst went on to explain this If Bitcoin is able to find solid support at the $ 30,000 low, the 20-week moving average could become a major area of ​​resistance for any attempt to move higher.

Filbfilb said:

“A smaller decline would likely make the $ 20,000 low or the 78.6% retracement level a likely target, so pricing action over the next week is particularly important.”

At this point, according to filbfilb, It is critical for BTC to get back to the $ 37,500 level “to avoid retesting weekly support”.

Should Bitcoin manage to start a rally and break above USD 40,000, filbfilb identified the previous support / resistance zone at USD 45,500 to USD 46,500 as the next resistance zone to be broken.

Ether draws a line at $ 2,300

ether fared slightly better than BTC after being sold to the 61.8% retracement, however, as the price was able to jump above the 20-week moving average, it was eventually rejected at the “critical pivot” price of $ 3,000 as the recovery momentum weakened.

ETH / USD 4-hour chart. Fountain: Decentrader

Filbfilb identified the $ 2,300 zone as an important area of ​​support for ether that would need to be maintained if the bulls were to gain momentum in an attempt to break above the $ 3,000 level and retest $ 3,300, with the scenario in The strength of Bitcoin depends to a large extent on it “.

In general, The analyst assumes that Ether will outperform BTC on every uptrend and “at least match every downtrend”.

He said,

“Right now, all eyes are on Bitcoin to see if the lows can be held towards the weekend, with a focus on the 200-day moving average, which is currently the line in the sand for the bulls.”

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trade movement involves risk. You must do your own research when making a decision.

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