BTCUSD Analysis: Important Support Under Threat

FXOpen

On May 7, Binance, the largest cryptocurrency exchange, suspended the withdrawal of bitcoins twice due to a heavy load on the network, which may be associated with a surge in traders' interest in new meme coins. This, in turn, caused bitcoin transaction fees to reach their highest level in two years. Fortunately, bitcoin operations on Binance were restored, but the unfortunate incident had a negative impact on the price of bitcoin.

The bitcoin chart shows that the current price of bitcoin in USD is near an important support line (1) — this is the median line of the ascending channel, which has been in effect since the beginning of the year. Bitcoin price rebounded (2) from this line in early May. However, the bulls failed to reach the psychological level of USD 30k (a sign of weak demand), and today bitcoin is forming the third bearish candle in a row. Because of this, a bearish breakdown of this line may form in the near future.

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This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

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