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Bitcoin Price Prediction – Failure to Return to $35,000 Levels Would Bring sub-$34,000 into Play

By:
Bob Mason
Published: Jul 5, 2021, 08:41 GMT+00:00

It's been a bearish morning for the majors. Bitcoin would need to make a move back through to $35,000 levels to avoid heavier losses on the day.

Golden bitcoins on the black background closeup. Cryptocurrency virtual money

After a bullish week for the crypto majors last week, it was a bearish start to the week this morning.

At the time of writing, Bitcoin, BTC to USD, was down by 3.08% to $34,190.0. A bearish start to the day saw Bitcoin fall from an early morning high $35,280.0 to a mid-morning current day low $34,050.0.

Bitcoin fell through the first major support level at $34,451 before steading.

Key through the early hours was avoiding a return to sub-$34,000 levels.

BTCUSD 050721 Hourly Chart

The Rest of the Pack

It’s been a bearish morning for the broader crypto market.

At the time of writing, Crypto.com Coin was down by 4.38% to lead the way down.

Binance Coin (-2.63), Cardano’s ADA (-3.38%), Chainlink (-3.32%), Ethereum (-2.50%), Litecoin (3.70%), and Ripple’s XRP (-3.08%) also struggled..

Bitcoin Cash SV (-1.78%) and Polkadot (-0.31%) saw relatively modest losses, however.

Through the early hours, the crypto total market fell from an early morning high $1,449bn to a low $1,404bn. At the time of writing, the total market cap stood at $1,411bn.

Bitcoin’s dominance rose to an early high 45.66% before falling to a low 45.39%. At the time of writing, Bitcoin’s dominance stood at 45.44%.

For the Afternoon Ahead

Bitcoin would need to move back through the $35,201 pivot to bring the first major resistance level at $36,025 into play.

Support from the broader market would be needed, however, for Bitcoin to break back through the first major support level at $34,451.

Barring a broad-based crypto rebound, resistance at $35,000 would likely leave Bitcoin short of the first major resistance level would likely cap any upside.

In the event of an extended crypto rally, Bitcoin could test resistance at $37,000 levels. The second major resistance level sits at $36,775.

Failure to move back through the $35,201 pivot would bring the second major support level at $33,627 into play.

Barring an extended sell-off through the afternoon, however, Bitcoin should steer clear of sub-$33,000 support levels. The third major support level sits at $32,053.

Looking beyond the support and resistance levels, we saw the 50 EMA narrow on the 100 and the 200 EMA this morning. While there are no signs of a bearish cross, the narrowing has tested support for Bitcoin through the morning.

A further narrowing of the 50 EMA on the 100 EMA and the 200 EMA would be a bigger drag on Bitcoin and the broader market.

Key going into the afternoon will be to move back through to $35,000 levels to bring $36,000 levels and major resistance levels into play.

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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