Bitcoin closed in May with a loss of 17.1 percent, failing to meet historical expectations for a positive month. The collapse of the Terra ecosystem hurt the overall crypto market. Early in the week, BTC tried to extend recent gains due to an overall improvement in risk sentiment, with the pair aiming to rise beyond the $33,000 level after recently trading as high as $32,383. Following the rise, BTC/USD faltered late Wednesday as traders sold on rallies as prices dropped below $33,000 to an intra-day low of $29,308 at the time of analysis. However, the month of June is considered a successful one for BTC. Bitcoin has closed the month up seven times and down four times in the last 11 years. The average increase was 16.7%, while the average decrease was 11.3%. As per Arcane Research‘s most recent weekly report, the growth of the BTC hashrate, which had lasted into 2022, came to an end in May. When the hashrate falls, it indicates that miners have begun to disconnect their computers, maybe due to little or no profitability. Miners’ USD revenues have shrunk as a result of this, paired with low BTC prices.
Key Levels
Resistance Levels: $37,000, $33,000, $30,000
Support Levels: $28,000, $25,000,, $22,000
BTC/USD Daily ChartThe BTC/USD pair has dropped quickly from the $32,000 range to $29,308, its lowest level in two days. On the daily time frame, BTC appears bearish, and consolidation below $29,000 could set the stage for more losses. Deviations from levels over $32,000, which marks the upper limit of a broad range, may pick up speed.
The $28,000 level could be tested again if the daily close is below the $29,000 support level. Before the drop, the BTC/USD encountered resistance in the $32,383 price range, where it reached intraday highs at the end of May. If the pair rebounds to rise above the indicated resistance level, it will be exposed to the daily moving average (MA 50) of around $34,500.
BTC/USD 4-Hour ChartThe BTC/USD pair is continuing to trade in a range below $33,000, and the intraday sentiment is within the expected range. On the other hand, the breakout of the $33,000 level might verify the scenario in which the consolidation from the May low of $25,338 to the $32,383 level might end at the $29,000 level.
Traders are seeking fresh upward price targets around the $33,000, $35,000, and $37,000 regions if BTC/USD rebounds from lows. A retest of $29,000 and a breach of the $28,000 low are possible outcomes of further declines. A break of the $30,000 psychological zone, on the other hand, will reverse the downtrend and trigger a new round of gains.
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