Bitcoin Price Prediction: BTC/USD Slumps to $42,000, Bears Target $40k

Bitcoin Price Prediction – May 17, 2021
BTC/USD has continued the downward move after a retest at the $50,000 psychological price level. After the rejection from the $58,000 high, BTC price plunged to $46,601 low on May 13. Bitcoin consolidated above $46,601 for three days before the bears resumed selling pressure

Resistance Levels: $65,000, $70,000, $75,000
Support Levels: $50,000, $45,000, $40,000

BTC/USD – Daily Chart

In the last bearish impulse on May 13, BTC/USD consolidated above $46,601 for three days. Buyers attempted to push BTC price upward. In the first upward move, the king coin was repelled at the $51,000 high. Sellers push back the coin and retested the $46,000 support. The bulls made another push on the upside. Buyers were overwhelmed as the BTC price slumped again to $43,000 support. Bitcoin is hovering now above the $42,000 support. It is not likely; the bulls will give up the $40,000 to $43,000 support zones. Bitcoin will have deeper correction if buyers fail to defend these support zones. Besides, any failure will cause Bitcoin to decline sharply on the downside.

Turkish Custom Impounds over 500 Smuggled Bitcoin Mining Rigs
Turkey’s Customs Protection’s anti-smuggling and intelligence teams have raided warehouses earlier in Karabağlar, İzmir. The task force found 501 ASIC Bitcoin mining rigs in closed cardboard boxes.

The seizure is valued at $600,000 worth of illegal Bitcoin ASIC miners and the detention of four suspects. According to reports, the law enforcement is carrying out another active operation in İstanbul, the biggest city and a major customs checkpoint in Turkey.

In a related development, the Turkish Minister of Treasury and Finance Lütfi Elvan indicated that the Financial Crimes Investigation Board, or MASAK, has full authority to audit and oversee crypto exchanges.

Given this, any crypto exchange with a presence in Turkey is now obliged to inform MASAK for crypto transactions above 10,000 Turkish liras ($1,200). This will provide countermeasure for fraud and illegal money trafficking.

BTC/USD – 4 Hour Chart

 

Bitcoin price prediction: Near-term bottom at $40,000-$42,000

Meanwhile, BTC/USD fell and found support above $42,000. BTC price is consolidating above the current support as buyers attempt to push Bitcoin above the $45,000 high.

The price action has confirmed 2.618 Fibonacci extension or level $44,955.10 where Bitcoin is expected to fall and find support. Bitcoin bulls are expected to defend the recent support.

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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.