Analyst says reclaiming $37,500 is Bitcoin’s crucial ‘line in the sand’

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Bitcoin (BTC) has seen some of its momentum stall over the past week, leading some to wonder if the cryptocurrency is due for a pullback. However, Tom Lee (analyst) of Fundstrat Global Advisors says that BTC has a crucial line in the sand, and that once it crosses it, a Bitcoin comeback (that could see BTC hit $25,000) is likely. That line is $37,500, and its importance is twofold: first, it is the 50% Fibonacci retracement level of BTC’s decline from its December high to its recent low. Second, it is the price at which BTC originally climbed above its 200-day moving average, a key indicator of price momentum.

After a months-long rollercoaster ride that has seen Bitcoin’s (BTC) price plummet from its new year highs, one analyst is calling the current price of $7,600 support a “line in the sand” that BTC will either pass or fail. Tom Lee, the co-founder of Fundstrat Global Advisors and one of the industry’s more prominent figures, recently shared his thoughts on the world’s most popular cryptocurrency, and whether he believes it is worth buying at its current price. Lee, who has gained notoriety for his BTC price predictions in recent years, was quoted in a recent interview with CNBC as saying:

The price of Bitcoin has tested the $37,500 mark recently thanks to strong buying, but the cryptocurrency’s recovery is still far from being complete, according to one analyst. After Bitcoin’s price surged by more than $1,000 to $1,735, less than a week ago, the cryptocurrency made another notable gain on Monday, pushing further above $1,800, as spotted by industry website CoinMarketCap.. Read more about bitcoin news and let us know what you think.

The price of bitcoin (BTC) continues to fall as U.S. traders prepare for the upcoming Memorial Day holiday on the 31st. May and regulated futures and options markets like the CME are closed for the weekend. Data from Cointelegraph Markets Pro and TradingView show that after a brief attempt by bitcoin (BTC) bulls to gain traction in the early morning hours of the 29th. After attempting to break $37,000, the price dropped below $34,000 as support for a rise failed to materialize. 4 hour chart BTC/USDT. Source: TradingView Analyst says reclaiming $37,500 is Bitcoin’s crucial ‘line in the sand’ The price dynamics of Ether (ETH) have been almost identical to that of BTC : The attempt to break through the $2,500 barrier encountered strong resistance, pushing the altcoin price back to $2,300.

$37,500 or less

According to an analysis by filbfilb, co-founder of Decentrader, bitcoin’s price action is a major source of confusion in the market, as it remains far from the 20-week moving average (WMA), which is usually the boundary for whether bitcoin is in a bull or bear market, and thus remains a bearish scenario for bitcoin. Four-hour chart of bitcoin. Source: Decentrader Analyst says reclaiming $37,500 is Bitcoin’s crucial ‘line in the sand’ The analyst further said that if bitcoin can find solid support around $30,000, the 20 WMA could become a key resistance area in any attempt to rise. Filbfilb said: A decline would likely make the lower $20,000 area or the 78.6% retracement a likely target. That is why the price action in the coming week is particularly important. At this point, filbfilb believes it is crucial for BTC to regain $37,500 to avoid a retest of weekly support. If bitcoin manages to build a rally and break above $40,000, filbfilb has identified the previous support/resistance zone at $45,500 – $46,500 as the next resistance zone to break through.

Ether draws a line at $2,300

Ether slightly outperformed BTC after selling up to the 61.8% retracement level as the price bounced above the 20 WMA, but eventually diverged to the critical $3,000 reversal price level as the recovery momentum ebbed. 4 hour ETH/USD chart. Source: Decentrader Analyst says reclaiming $37,500 is Bitcoin’s crucial ‘line in the sand’ Filbfilb has identified $2,300 as a key support area for Ether, which should be held if the bulls are to gain momentum to attempt a breakout above $3,000 and a retest of $3,300, although this scenario is heavily dependent on bitcoin’s strength. Overall, the analyst expects Ether to outperform BTC on any upside and at least follow any downside. He said, Attention is currently focused on bitcoin to see if the bottoms can hold up over the weekend, with a particular focus on the 200 DMA, which is currently the line in the sand for the bulls. The views and opinions expressed herein are those of the author and do not necessarily reflect those of Cointelegraph.com. Every investment and every transaction involves risk. So you need to do your own research before making a decision.John McAfee, cybersecurity pioneer, has stated many times that Bitcoin would hit $1 million but he never set a date for that prediction. That said, many have wondered if McAfee set a price target under which Bitcoin will be a failure. In a recent blog post, Nigel Green, founder and CEO of deVere group, a leading independent financial consultancy, wrote that McAfee believes that Bitcoin’s price needs to hit $37,500 to prove that it is not a failure.. Read more about ethereum crash today and let us know what you think.

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Emilia James
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