BTC Won’t Climb above $43,000-$46,638 in Near-Term
Analysts are not optimistic about Bitcoin’s near future. The cryptocurrency leader will experience difficulty with rising after the two deep dives taken on May 19 and May 23. Although less significant altcoins have mostly recovered their losses, Ethereum and Ripple, like Bitcoin, are expected to have a hard time climbing after the fall.
Bitcoin’s steep decline was partly caused by China. The country has recently imposed strict rules directed at preventing Chinese lovers of cryptocurrency from mining. Cloud mining companies have declared that they would block all IP addresses located in mainland China to comply with China’s regulatory requirements. Among these mining companies are BitDeer, Huobi, ByBit, and BitFuFu.
To worsen Bitcoin’s condition, Iran, where the mining of cryptocurrencies is flourishing, has implemented a ban on cryptocurrency mining. Already brought into effect, the ban will last until September 22. China’s and Iran’s regulatory stance on cryptocurrencies has dealt a heavy blow to Bitcoin’s price, pushing it to lows untouched for several years.
So far, Bitcoin has recovered roughly 30% from its downfall on May 19. While climbing, the token tested the resistance level at $40,586. But upset with Bitcoin’s fall, investors began to book profits, which pushed the digital token to a lower level at $37,486, where it is trading at the moment.
Investors are advised to watch the supply region from $43,000 to $46,638 that has the weekly open at $46,426. Analysts predict that Bitcoin will not come through this area in the near future. If the token happens to rise above this level, it will not hold its position, they say. Bitcoin may even drop deeper.
If Bitcoin indeed drops deeper, it will gain support at $40,586. If it breaks through this zone, it will retest the $34,049 level.
On the other hand, if Bitcoin manages to close above $50,000, the bearish tilt will disappear. Should Bitcoin gain strength, it can be expected to rally 25% and then to test the monthly open at $57,697.