Bitcoin Remains Choppy Despite Renewed Investor Optimism
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Bitcoin (BTC) and the rest of the cryptocurrency industry slipped lower in the early hours on Thursday. However, the cryptocurrency did not fall to its recent lows as most traders are optimistic that BTC is recovering.
Bitcoin fell to the $37,120 low in the Asian session today, while Ethereum (ETH) fell by about 8% to $2,642.
Analysts asserted that the fall felt relatively mild compared to the recent market crash, though concerns about regulatory attention and wavering enthusiasm from Tesla CEO Elon Musk places the market under duress.
Nonetheless, Kyle Rodda, IG Markets analyst, asserted that “the big cleanout has probably occurred,” as market volatility has calmed significantly.
The analyst noted that “people lose patience and bail along the way, but … it looks like it’s starting to form a bit of a bottom here,” adding that “I’m sure that there are still some nervous folks out there who’re hoping and wishing that their long crypto positions are going to crawl back into the green.”
Bitcoin’s recent drop came through renewed efforts by China to crack down on mining and cryptocurrency activities in general, coupled with the recent announcement from Tesla that it had stopped accepting BTC as payments for vehicles due to environmental concerns.
Key Bitcoin Levels to Watch — May 27
After a steady recovery from its recent plunge, Bitcoin appears to have fallen into consolidation between $37k and $40k. However, the benchmark cryptocurrency attempted to break out of this range yesterday with a leg up towards the $41k mark, but bears had other plans.
Nonetheless, Bitcoin has just climbed back above the 200 SMA for the first time since its recent crash, indicating that this sideways momentum might not last for long. However, the cryptocurrency has to clear the $41k resistance to reestablish a bullish presence.
Meanwhile, our resistance levels are at $39,500, $40,000, and $41,000, and our key support levels are at $37,500, $36,000, and $35,000.
Total Market Capitalization: $1.71 trillion
Bitcoin Market Capitalization: $728 billion
Bitcoin Dominance: 42.5%
Market Rank: #1
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