Technical Analysis for BTCUSD for 2nd June 2022
Bitcoin Falls 7%, BTC Pulls Back From $32k
Past Performance of BTC
Bitcoin prices are down seven percent after cratering on June 1. After what appeared to have been a strong higher highs, yesterday’s pullback is dashing for optimistic bulls. Notably, there is a three bar formation in the daily chart indicating bearish sentiment whose confirmation today could further slow down recent advancement.
Bitcoin Technical Analysis
The retracement below the $32k resistance line, which also flashes with the highs of the May 11 bear bar, is bearish. The bearish engulfing bar of June 1 is with relatively high trading volumes pointing to strong trader participation. With the dominant trend being bearish below $32k, confirmation of yesterday’s losses could see BTC crash below $28.7k in the short term. Even so, because of recent impressive gains, bulls may find the opportunity to buy the dips as long as prices are within the May 30 trade range and above $28.7k. Their immediate target would be $32k and later $34k. Risk averse traders can choose to wait for proper trend definition either above $32k or below $28.7k before committing.
What to Expect from BTC
For a short period, Bitcoin appeared to have been turning the corner. However, until there is a comprehensive and ideally high volume close above $32k and $34k, bulls are not in a commanding position from an effort versus results perspective. Notably, the May 9 and 11 highs are immediate resistance lines that define the downtrend from early May 2022.
Resistance level to watch: $32k
Support level to watch: $28.7k
Disclaimer: Opinions expressed are not investment advice. Do your research.
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