Bitcoin stays on the defensive after Elon Musk’s tweet earlier in the day
04 Jun 2021
Falling out of love?
Bitcoin is down over 5% just below $37,000 currently but the technicals arguably paint a better picture as to how price action is developing in recent weeks.
While there was some encouragement to the latest bounce earlier this week, it didn’t really change anything from a technical perspective.
Buyers still need to get back above $40,000 and the 200-day moving average (blue line) to even have a shot of regaining any upside momentum and they are falling short again today – not helped of course by Musk’s erratic behaviour on Twitter.
That said, there is also seemingly a floor around the 50.0 retracement level @ $34,378 so look out for that on the daily close for any confirmation of a break lower.
Otherwise, the volatility looks set to continue within this space until either buyers or sellers give way eventually.