Bitcoin price recovers $31.5K, but traders say ‘scam’ price action will bring more downside

Bitcoin’s (BTC) short-term value motion has been dominated by whipsaws that set off across the $31,000 to $32,000 stage and the June 6 reversal at this level triggered a fast sell-off that pushed the value all the way down to $29,200.

Surprisingly, on June 7, the value quickly reversed course as Bitcoin rallied again to $31,500, however given the present rejection at this stage, merchants are prone to proceed cautiously, moderately than count on a fast surge to $35,000.

BTC/USDT 1-day chart. Supply: TradingView

Right here’s what a number of analysts are saying concerning the short-term outlook for BTC and what assist ranges to control shifting ahead.

A transparent redistribution vary

The range-bound buying and selling at present impacting Bitcoin was addressed by crypto analyst and pseudonymous Twitter person il Capo of Crypto, who posted the next chart highlighting the “clear vary” that BTC has been caught in for practically a month.

BTC/USD 4-hour chart. Supply: Twitter

The analyst stated,

“What is going on contained in the vary and what has occurred on the vary excessive, exhibits that that is [a] clear redistribution vary. Clear break of the vary low = final leg down confirmed = 21K–23K.”

Ongoing flip-flop value motion

A barely completely different final result to the present market chop was instructed by crypto dealer and pseudonymous Twitter person Phoenix, who posted the next chart lamenting the month-long range-bound buying and selling for BTC and hinted that it’s going to see extra of the identical.

BTC/USD 2-hour chart. Supply: Twitter

Phoenix stated,

“On our approach in the direction of an entire month inside a mini-range once more to completely deploy the flip-flop-your-bias-non-stop-angry-pleb-and-gtfo. *Ppl fomoed the highest, lows taken once more after the nuke, up we go once more?*”

Associated: Coinbase balance drops by 30K BTC as Bitcoin price nurses 6% losses

A potential flush out to $20K

For merchants attempting to get some sense of where the bottom might be, market analyst and pseudonymous Twitter person Rekt Capital posted the next chart highlighting the 200-EMA (exponential shifting common) as a key indicator to observe.

BTC/USD 1-week chart. Supply: Twitter

Based on Rekt Capital, the value historical past for Bitcoin exhibits that whereas it “tends to verify uptrends when it breaks above the blue 50-week EMA,” on the flip aspect it “tends to verify most monetary alternative when it reaches and breaks down from the black 200-week EMA.”

A more in-depth have a look at the current value motion round these indicators was offered within the following chart posted by Rekt Capital to offer a greater image of what assist stage to look out for.

BTC/USD 1-week chart. Supply: Twitter

Rekt Capital stated,

“This space is ~confluent with the orange #BTC 200-week MA. In reality, $BTC would want to draw back wick beneath the 200MA to succeed in the ~$20K space. Curiously, draw back wicking tends to happen beneath the 200MA to mark out generational bottoms.”

The general cryptocurrency market cap now stands at $1.24 trillion and Bitcoin’s dominance price is 46.4%.

The views and opinions expressed listed below are solely these of the creator and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer includes danger, it’s best to conduct your personal analysis when making a call.