Bitcoin Price Analysis: BTC Makes an Attempt at $34k. Will it Hold?

According to Cryptocurrenciestowatch few minutes to the time of writing, Bitcoin retraced as low as $34,210. There were major fears of the apex coin testing and flipping the $34k support increased. Opening the day at $35,472, the $35k support with much resistance. Will $34,000 also be the same?

It is important to know how vital the said level is.

Bitcoin Could Test $31,000

While a few traders are still bullish on the asset, some are silent as to what the next price action will look like. With the $36k support breaking Friday, there were several speculations as to how low prices will fall.

One outlook stated that the $34k support was the strongest after the highlighted mark. The analysis also stated that the level is the gateway between a dip as low as $32k and further price increases. It remains to be seen when the level will be tested.

Previous price movements suggest that $32k is weak as most retracements below $34,000 have resulted in further downtrends past the said mark. For example, one of the memorable corrections last year was on May 19.

The apex coin lost more than 14% that day, but the main highlight was the downtrend halted: at $30k. Another such occurrence took place four days later and and the weak support crumbled. Where dip halted: $31k.

Other corrections also painted the aforementioned level as frail. It is important to defend the $34,000 support as a flip may result in a retest of $31,000. Will the said mark fall?

The $34,000 Support may Fall

At the time of writing, BTC has found support at $34,210. It has rebounded and is exchanging at $34,800. However, the mode at which the said level breaks is still a cause for concern. There have been two scenarios leading up to the flip.

From one of the cited examples, we deduced that the top cryptocurrency broke $34k due to intense selling pressure. The retracement was represented by one of the longest candles in the coin’s history. If such is seen again, there is no doubt that the support under consideration will break.

The second scenario that may play out is a constant sellers’ congestion that may last days. Depending on the closing price today, bitcoin may lose $34,000 within the next two days. However, if the bulls build on the current recovery momentum, we may see further uptrends that may be aimed at $38,000.

Additionally, if the first instance happens, BTC may retest $31,00.