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Here Are 3 Important Bitcoin Levels You Might Want to Watch

Mon, 06/06/2022 - 13:00
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Arman Shirinyan
As Bitcoin breaks through $30,000, it is important to determine upcoming support and resistance levels
Here Are 3 Important Bitcoin Levels You Might Want to Watch
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Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

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Following Bitcoin's breakthrough from $31,300, IntoTheBlock has shared price levels on the chart that traders and investors should look after, as they may bring additional volatility and unexpected price actions.

Money Around Price Metric and first support

For determining local support and resistance levels, IntoTheBlock utilizes a metric that shows the volume of entries around a certain price. We are currently seeing a formation of an important price level at around $30,000, with the total volume of 980,000 BTC.

Such a large volume reflects the fact that traders were actively purchasing Bitcoin at that price, most likely betting on the reversal from $29,000.

Resistance incoming

To break out further, Bitcoin will have to absorb more than 220,000 BTC of volume in the upcoming hours, or we will see another reversal back below $30,000. No major resistances are tracked up ahead.

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Right now, only 30% of traders are losing money from Bitcoin trading at $31,420, indicating that there should be no selling pressure from those who are breaking even at the current price.

Technical levels

As for technical support and resistance levels, BTC is currently sitting at the support and moving in the consolidation channel formed since the middle of May. The first resistance on the daily chart is at $40,000.

At press time, Bitcoin is trading at $31,400 and trying to push through the last reversal point on the chart, which is $31,800. Unfortunately, the buying volume is the main problem that keeps the digital gold from starting a new rally to $40,000.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.