Decentrader analysts noted that Bitcoin (BTC) needed to promptly reclaim the $37,500 point while Ether (ETH) needs to stand firm at $2,300 as the support to steer clear of bull-market-ending price action. Recent weeks have seen the BTC price limping lower as U.S traders prepare to kick off the Memorial Day holiday on May 31. With an upcoming holiday, it means that regulated futures and options markets like the CME will not be open throughout the weekend.
TradingView data reveals that in the early morning hours of May 29, BTC bulls attempted to rally above $37,000 but the price later tumbled below $34,000. This unprecedented tumble is an indication that the support needed a push to take it higher, but this did not manifest.
BTC/USDT 4-hour chart obtained from TradingView
A closer look into the price action for Ether reveals that it is almost similar to that of BTC as it struggled to break above $2,500 but there was a lot of resistance for the altcoin, which pushed it to $2,300.
$37,500 is the ‘Line in the Sand’ for BTC
The co-founder of Decentrader, filbfilb, conducted an in-depth analysis of Bitcoin’s price action and concluded that it has caused massive market confusion as it is still a ways away from the 20 Week Moving Average (WMA). The 20 Week Moving Average is typically the determinant of whether BTC will keep up with its bearish or bullish scenario, and as it is revealing, Bitcoin’s scenario at the moment is bearish.
Bitcoin’s 4-hour chart obtained from Decentrader
The analyst further claimed that if Bitcoin could find the momentum to solidify its support in the low $30,000s, the 20 WMA could become its new major resistance zone as it attempts to move higher.
This means that it is paramount for BTC to reclaim $37,500 if it is to avoid retesting its support levels.
Filbfilb also added that if BTC was to stage a progressive rally that broke it above $40,000, the previous support resistance zones of $45,500 to $46,500 would act as the upcoming resistance zones to be overcome.
Ether Takes a Stand at $2,300
Judging by the top crypto assets’ performance in the past few weeks, ETH performed slightly better than BTC as it sold off back to the 61.8% retracement and the price managed to reclaim its position above the 20 WMA. This was however rejected just like BTC at the ‘critical pivot price’ of $3,000 as the recovery momentum started fading.
ETH/USD 4-Hour chart, obtained from Decentrader
According to Filbfilb, ETH’s important area of support is $2,300, which it would need to hold if the bulls were on track to gather momentum to break above $3,000.
Image courtesy of pixabay