BTC price action reminds traders of the initial dip in May as rejections characterize attempts to break higher.
Bitcoin (BTC) fell precipitously on Friday after a rejection above $35,000 sparked a rout toward familiar support.
Bitcoin heads back toward $30,000
The pair had hit local highs of $35,400 overnight before abruptly reversing trajectory to fall below $33,000.
For popular trader Crypto Ed, the situation was similar to events last month after BTC/USD first bounced at $30,000 support.
“Current, sluggish PA reminds me of a similar situation a few weeks ago….. I thought we did a 1-5 and started next cycle but after 1 more top, BTC made a deeper correction,” he commented on an accompanying chart.
“Thinking we might get the same here.”
That would place Bitcoin in a position to rechallenge the $20,000 corridor, which it briefly broke into several days ago.
As Cointelegraph reported, the mood among many traders remains skewed to the cautious side after BTC/USD failed to reach a $37,000 target before its latest rejection. The possibility of a new lower low is thus far from off the cards.
BTC buy interest remains
Signs of underlying confidence nonetheless remain.
On Friday, it was again El Salvador and its Bitcoin law in the spotlight after president Nayib Bukele announced that every eligible citizen would receive $30 free in BTC for downloading its wallet.
Institutional bullishness, meanwhile, came in the form of the Purpose Bitcoin ETF, which continued to add to its assets under management throughout the price dip.
Meanwhile, altcoins were flat, with no single asset managing to break out of established trading zones.