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May 8, 2022

Bitcoin )BTC) Price Analysis 05/08

While some traders remain positive on the asset, others are undecided about the next price action. There were numerous predictions as to how low prices would fall once Bitcoin $36k support was broken on Friday.

After the highlighted mark, one forecast claimed that the $34k support was the strongest. The figure, according to the study, is the midpoint between a plunge as low as $32k and future price hikes. When the level will be tested remains to be seen.

Most retracements below $34,000 have resulted in continued downtrends past that mark, indicating that $32k is a weak level. Last year, for example, one of the most remarkable adjustments occurred on May 19.

The apex coin dropped more than 14% on that day, but the biggest news was that the downturn had come to an end: at $30,000. Four days later, a similar scenario occurred, and the shaky support collapsed. $31k was the point at which the drop came to a standstill.

Other tweaks portrayed the aforementioned level as vulnerable. It’s critical to hold the $34,000 support because a flip might lead to a retest of $31,000. Will the aforementioned mark fall?

BTC has found support at $34,210 at the time of writing. It has recovered and is currently trading at $34,800. The way in which the aforementioned level breaks, however, remains a source of concern. There were two possibilities leading up to the flip.

We inferred that the top cryptocurrency broke $34k because to heavy selling pressure from one of the listed examples. One of the longest wicks in the history of the coin showed the retracement. If this happens again, the support under consideration will undoubtedly fail.

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A persistent sellers’ congestion that could last days is the second scenario that could play out. Bitcoin could lose $34,000 in the following two days, depending on today’s closing price. If the bulls maintain their current rebound pace, we could witness more uptrends with a target of $38,000. In addition, if the first incidence occurs, BTC may test $31,00 again.