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Bitcoin Update for June 7th, 2021

Wow, so much to talk about since my last update! Ah, well I wish that was true but unfortunately not much has changed. Bitcoin is still grinding sideways, over the last week the price has ranged from about $35k up to about $39k. The price swings since the big drop on May 19th have been slowly narrowing as volatility calms down, maybe that means bitcoin is getting ready to make a big move.

Bitcoin Daily Chart

Looking at the daily chart you can see what I was talking about how the price action has been tightening over the last 19 days. Bitcoin still sits below all of the moving averages as the price struggles with resistance created by the price action that took place at the beginning of the year (white circle). You can see that as the price action has been tightening it is forming a symmetrical triangle. You can also see that the price is almost at the apex of the triangle and it should resolve one way or the other. As I have said in the past I look at this as a bearish triangle because the prior price action was bearish. I believe the probability of the price breaking down lower is greater than it breaking out higher, however, I would prefer to see the price breakout higher.

Bitcoin Daily Chart2

Looking at this daily chart you can see I added lines where I see support and resistance levels. You can see just how much work buyers will have to do to get the price back up near the peak. And conversely, you can see that there really isn't too much support below so if the price drops and breaks the $30k level it could fall substantially lower. There really isn't very strong support until you get down to around the $23K level, and below that the $20k to $19k level.

Bitcoin Monthly Chart

Looking at the monthly chart you can see that the price remains below the 7 EMA ($40k), and I will remain bearish until the price can push above it. I won't instantly become super bullish but I will definitely become more optimistic.

The rest of the crypto market isn't looking any better, most altcoins are just cycling up and down with bitcoin. I really wish there was more to report but right now the price of bitcoin is just stuck in this boring sideways action that could end any time or last for weeks or even months. I am perfectly happy with this sideways action and willing to wait as long as it takes if that means that when it ends bitcoin will resume the bull market. I would much rather have bitcoin bottom out here and consolidate rather than seeing the price take a deep dive down to $20k or even lower.

If the price action remains boring and sideways I may start only updating like once a week until things pick up and there is something more substantial to talk about.

That's all I've got for now. Take care!


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