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Bitcoin: on the lookout for new drivers

Bitcoin fell by 1.51%, to $36,698 on Tuesday, June 1. The price action remains stuck in a side trend. The bulls face the challenge of breaking out of $37,400. The market is in wait-and-see mode and has been attempting to breach that level for almost 14 days. So, while the market continues to flatline, let's break down the weekly TF on a logarithmic scale.

At $18,000, the price action exited the A-A channel (see chart below). It had two targets of $43,444 (161.8%) and $74,891 (200%). Buyers reached the first goal, but didn't make it to the second one. Looking at the Fibo levels with a margin of error, the correction was 23.6% of the growth from $3,782 to $64,854.

After falling to $30,000, the price action bounced off the trend line. Given that the previous gains came at a rate of $153 per day from $3,782, along the 200% line, resistance is located at $86,547 (September 20, 2021). At this rate, the price action will correct 50% by July 5, and should completely offset the decline by August 16.

As we wrote on Tuesday, if, within 30 hours (until 5:00 UTC on 02/06/2021), the bulls do not test the $39,000 level, clouds will start to gather. The price action stepped up to $37,894. The bears run the show right now. The bulls will need to hold their positions for 45 hours until June 4 (07:00 UTC). Given that the market is thin, a downturn could come fast and hard. The trendline on the weekly TF passes through the $32k level. A retracement to $33k would not be critical, but it could give the bulls a damn good scare.

On the hourly TF, the price action is near the midpoint of a narrowing channel. A symmetrical triangular formation is shaping up. The market needs some upbeat news to break out of it.

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