The price of Bitcoin managed to break a series of 9 bearish candles in a row and form the first bullish candle in three months. This candle was formed due to the rise in price in the last days of May. In the first days of June, the BTC price began to descend again, but still closed the week above the opening price. On the 1-week chart, the price formed a bullish candlestick with a long shadow at the top.
Despite the fact that the price of Bitcoin still managed to return above 30,000, it does not show signs of a sharp increase. As the BTC price approaches the level of 32,000, the activity of sellers is growing. If the price of Bitcoin manages to rise above 32,000, we will see active sales in the range of 32,000-34,000. Here, investors will try to recoup their losses.
While traders are trying to take profits on short timeframes, the broader market continues to move sideways with no clear indication of what next.
At the time of publication, the BTC/USD pair is trading around 31,400. It easy cleared the 30,500 and 31,200 resistance levels. A move above 31,650 would encourage a new attempt to rise above 32,000. However, breaking 32,000 would not signal the start of new growth. To start ascending, the BTC/USD pair should overcome the resistance in the 32,400 area, which stopped the pair last week.
If we see the bullish activity fade and the BTC/USD pair move below 30,650, it will continue to decline. In this case, we consider the 30,400 level as a strong support level.