Bitcoin Price Forecast: BTC rebound short-lived, bears target $34,000
- Bitcoin price is facing stiff resistance ahead.
- Given the high number of underwatered investors, more selling can be expected at every upswing.
- Losing $40,586 as support could see BTC dive to $34,049.
Bitcoin price struggles to recover as uncertainty mounts in the cryptocurrency market.
Bitcoin price doomed to head lower
Bitcoin price has recovered roughly 30% from its crash on May 19. The move-up has resulted in a test of the $40,586 resistance level.
It appears that investors began to book profits, pushing the pioneer cryptocurrency lower to where it currently trades at $37,486.
The supply zone extending from $43,000 to $46,638, harboring the weekly open at $46,426, is extremely important. There’s a high chance Bitcoin price will not slice through this hurdle in the coming week, making any upticks above it short-lived. Therefore, investors need to keep a close eye on this resistance zone.
A potential rejection from this barrier could mainly be caused by market participants caught off guard during the May 19 crash who are trying to break even. Therefore, BTC price may reverse at these levels and head lower.
Assuming Bitcoin tags the weekly open and heads lower, the demand wall at $40,586 will be its first support level. A breakdown of this area will lead to a retest of $34,049.
BTC/USD 1-day chart
While the scenario explained above is leaning bearish, a decisive close above $50,000 will invalidate it. If such a narrative were to evolve, investors could expect Bitcoin price to rally by 25% and tag the monthly open at $57,697.
Author
FXStreet Team
FXStreet
