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Bitcoin futures have been in a tense situation during the past two weeks, trading in a tight range between about 29,000 and 31,500 around the critical long-term support level of 30,000 that has been in play since early 2020.
This slim trading zone feels unusual for a product prone to such huge price swings. But the /BTC contract has been clinging on without forming a breakout in either direction, despite closing below this key 30,000 level every day since May 19.
A breakout could be particularly energetic this time for the cryptocurrency, as the potential energy builds during this coiling price pattern. To the upside, there’s little in the way of technical resistance until the 21-day Exponential Moving Average near 32,160. There was one bullish development yesterday as the MACD made an upside crossover, but the overall picture still looks quite bearish.
The major moving averages are all sloping downward, while the big recent lows near 25,350 that /BTC made on May 12 came alarmingly fast. There’s little in the way of support until the -2 Standard Deviation Channel until around 24,600, and the three-year Volume Profile shows very light trading from here to about 20,000, so beware of fast-moving prices.
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