Bitcoin needs to reclaim $37,500 level to avoid market-ending price action, analyst says

With the looming Memorial Holiday at the end of May and regulated futures and options markets such as Chicago Mercantile Exchange (CME) closed through the weekend, an analyst from Decentrader says bitcoin needs to quickly hit the $37,500 to prevent bull-market-ending price action.

According to data from TradingView and Cointelegraph Markets Pro, on May 29, the cryptocurrency had an attempt to rally past the $37,000 mark but it ended and fell below $34,000 as the badly needed support for it to move higher did not happen.

At press time, CoinGecko tracking shows bitcoin is changing hands at $33,936, staring at a decline of just less than 10% for the past seven days.

Hitting the $37,500 mark

The 20-Week Moving Average (WMA), essentially the line between bitcoin being a bull or bear market, remains a bearish scenario for the digital asset.

Decentrader co-founder filbfilb pointed out that if the crypto is able to find solid support in the low $30,000 mark, the 20 WMA could prove to be a major resistance zone, hindering attempts to move prices higher.

“A drop lower would likely make the low $20,000s or the 78.6% retracement a likely target. As such, price action over the next week is particularly important,” the analyst said. He also added that it is very crucial for bitcoin to reclaim the $37,500 mark to stop a potential retest of weekly support.

What about ethereum?

As for the case of the leading altcoin, ethereum needs to hold the $2,300 mark as support to avoid the same kind of price action.

It performed slightly better compared to bitcoin, trimming 61% of retracement, having its price move past the 20 WMA. However, the recovery momentum faded as it failed to breach and hold the $3,000 mark.

At press time, it is trading at $2,233, losing almost 12% of value for the past 24 hours.

 

Image courtesy of Cointelegraph News/YouTube

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