Bitcoin struggles to gather momentum to move back above $40,000, sits lower on the day
25 May 2021
Not much of a technical reprieve for Bitcoin so far
While the declines aren’t extending lower this week, upside momentum has also been rather lacking in Bitcoin – at least in any way that matters from a technical perspective.
Getting back above $40,000 is an important psychological win for Bitcoin buyers but they also need to manage a break above the 200-day moving average (blue line) @ $40,505.
Otherwise, those two levels will continue to keep a lid on any material upside move in Bitcoin and keep sellers interested to stick with the downdraft over the past two weeks.
Looking at the near-term chart:
There is a bit of a base around the $32,000 level which is where buyers seem to be trying to hold a bounce off of. However, sellers are seen around $40,000 and the 200-hour moving average (blue line) so as to prevent buyers from seizing near-term control.
As such, unless price can break above $40,000, buyers are not likely to find much comfort in settling for the slight bounce seen to start the new week.