Bitcoin Price Forecast: BTC bleeds after rejection $39,000

Published June 4, 2021 | Updated June 4, 2021

In Brief
  • Bitcoin fails to charm investors again after abandoning the recovery to $40,000 at $39,000.
  • The 50 SMA on the four-hour is the immediate support likely to prevent the price from revisiting $36,000.
bitcoin

Bitcoin Price Forecast: BTC bleeds after rejection $39,000

  • Bitcoin fails to charm investors again after abandoning the recovery to $40,000 at $39,000.
  • The 50 SMA on the four-hour is the immediate support likely to prevent the price from revisiting $36,000.

This week, Bitcoin price staged another recovery mission, extending the gains from support at $33,000 to highs around $39,000. Investors anticipated a break above $40,000, but the rejection has led to an ongoing retreat.

The pioneer cryptocurrency trades at $37,800 while holding dearly to the 100 Simple Moving Average (SMA). It is almost certain that the bearish leg will stretch further; therefore, the 50 SMA on the four-hour chart is in line to offer support.

It is essential to keep in mind that for a few days this week, BTC was pivotal at $37,000. Support at $36,000 played a key role in ensuring that declines were mitigated. On the upside, bulls found it challenging to break through $38,000 except for Thursday’s price action that extended to $39,000.

Bitcoin’s bearish outlook intensifies

The relative Strength Index (RSI) on the four-hour chart has a vivid bearish signal. This follows a gradual rise from May’s oversold conditions to levels close to 70. A correction toward the midline insinuates that bears are getting aggressive, and more gravitational pull on the price should be expected.

A comprehensive look at the Moving Average Convergence Divergence (MACD) shows that bulls still have the upper hand, but we cannot ignore the speed at which sellers are advancing. Therefore, a sell signal will occur if the MACD line (blue) crosses under the signal line. Subsequently, defending support at the 50 SMA and $36,000 is crucial to averting potential losses to $33,000.

BTC/USD four-hour chart

BTC/USD price chart
BTC/USD price chart by Tradingview

On the upside, regaining ground above $38,000 would call more buyers into the market and perhaps resume the uptrend above $39,000. Trading past $40,000 is critical because investors would most likely increase their stakes while speculating upswing to $40,000.

Bitcoin intraday levels

Spot rate: $37,800

Trend: Bearish

Volatility: Growing

Support: 50 SMA, $36,000 and $33,000

Resistance: $39,000 and $40,000

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

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John Isige 1004 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
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