Crypto Daily: Bitcoin Consolidates; Altcoins Follow The Movement

Jun 04, 2021
06:06
2 min reading

Choise.com team

Interest in the first cryptocurrency continues to fall. This can be seen in the declining volatility on the chart.

Altcoins do not show strong dynamics. Most of them simply copy Bitcoin’s movements and went flat. All attention is focused on the first cryptocurrency, and therefore it is necessary to understand what to expect from Bitcoin in the near future:

In the last 7 days, the Bitcoin chart has been showing a slight uptrend. Its price has already risen from $33,500 to $39,500, or nearly 20%. Therefore, the decline that is unfolding today can be called a small correction. At the same time, it can continue up to $35,000, where the lower border of this uptrend is now located. This level will be a priority for buying from the point of view of risk management.

Sideways movement of Bitcoin after the rapid collapse in May is normal. At that time, a record number of positions in history were liquidated and many market participants lost money. Now they need time to get back into the market. This is not the first time we have seen such a picture.

If you look at the indicators, everything looks good there. The RSI is showing slow steady growth, which is a good sign. At the same time, convergence was formed here, which speaks in favor of the growth of Bitcoin. A similar situation developed on Stochastic.

MACD dropped significantly in mid-May and was at the bottom for a long time. However, in early June, this indicator began to turn upward. Its junior average line crossed the senior average line and the gap between them continues to widen. We think that in the next 2-3 days, MACD will show growth.

The chart is squeezed between $30,000 and $40,000 and the price cannot go beyond these boundaries. If Bitcoin breaks the $40,000 mark, then the price will be ready to go up to $47,000. But if buyers cannot do this, then the price will drop to $30,000, where there will be a fight between bulls and bears. If the bears win, then Bitcoin can very quickly go down to the $22,000 – $20,000 range. In such a highly uncertain situation AI Price Predictions could give a more accurate price movement for altcoins.