Bitcoin (BTC) Price Prediction: BTC/USD Drops as Bitcoin Finds $35,000 Support

Bitcoin Finds $35,000 Support– June 18, 2021

BTC/USD has turned down from the $41,273 resistance as Bitcoin finds $35,000 support. Buyers have been struggling to break the resistance for the past three days but could not sustain the bullish momentum above it. With this rejection, the bears are attempting to sink BTC’s price to $31,000 low.

Resistance Levels: $45,000, $46,000, $47,000
Support Levels: $35,000, $34,000, $33,000

BTC/USD – Daily Chart

With the rejection at the $41,000 resistance, Bitcoin has fallen to the downside as bears attempt to sink Bitcoin. Since May 19, BTC’s price has been fluctuating between $31,000 and $42,000. Buyers have retested the $40,000 resistance on several occasions to resume upside momentum. Bitcoin lacks buying power at higher price levels. This has contributed to Bitcoin not being able to sustain above $41,000 resistance. As Bitcoin falls below $38,000, the bears will attempt to push Bitcoin to $31,000. A break below $31,000 support will push BTC’s price to a deeper correction. On the other hand, the bulls will attempt to defend the critical support at $35,000 by buying the dips. When the bulls buy the dips, the market will rally to retest the $41,000 resistance. For the past month, this has been the bullish and bearish scenario.

Goldman Sachs Divided over Whether Bitcoin Is an “Investable Asset Class”

Wall Street investment bank Goldman Sachs has divided opinion as it struggles to define the asset’s investment status. Goldman Sachs has come with two reports on whether Bitcoin is an “investable asset class”. One report title: “Digital Assets: Beauty Is Not in the Eye of the Beholder”, concluded Bitcoin is not “a long-term store of value or an investable asset class”. On May 21 report titled: “Crypto: A New Asset Class?” Bitcoin has been classified as an investable asset.

According to Matthew McDermot of global head of digital assets at Goldman Sachs, said: “Bitcoin is now considered an investable asset”. Goldman Sachs concluded that: “The argument that Bitcoin and cryptocurrencies are a digital version of gold does not confer any value to Bitcoin and other cryptocurrencies, because gold itself is not a consistent or reliable store of value,”. “After analyzing various valuation methodologies and applying our multi-factor strategic asset allocation model, we have concluded that cryptocurrencies are not a viable investment for our clients’ diversified portfolios.”

BTC/USD – Daily Chart

Meanwhile, Bitcoin finds $35,000 support for a possible retest at the $41,000 resistance. On April 24 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that Bitcoin will fall to level 2.0 Fibonacci extension. That is the low of level $29,949.00.

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Azeez Mustapha is a technical analyst with many years trading experience in the stock exchange and crypto markets. He has broad experience in forex trading, coaching, and funds management.