Technical Analysis for BTCUSD for 6th May 2022
Bitcoin Free-Falling, Sellers Set Eyes on a Retest of $34k
Past Performance of BTC
The BTC price is down nine percent in the previous trading week, sliding below the recent sideways movement defined by the April 26 bear bar.
In a breakout formation, BTC fell, underperforming the USDT.
Technically, sellers remain in control, mirroring the formation of April 11. Then BTC dumped below a multi-week support trend line, signaling weakness.
Bitcoin Technical Analysis
Bitcoin is free-falling, sharply reversing gains of May 4 and turning price action back to bearish. At spot rates, sellers may unload on every attempt to retest $37.3k—May 4 lows. Notably, the BTC price is reacting from the flexible resistance level—the 20-day moving average or the middle BB, cementing the line's significance. The Middle BB has been capping advances, squashing every bullish attempt in the month, following the breakout on April 11. A pullback may offer entries for sellers angling for $34k in the short term—flashing with Q1 2022 lows.
What to Expect from BTC
Bitcoin is finding adoption across the world. However, this is not reflected on price charts. At present, the coin may easily sink to $34k as sellers double down, unwinding gains posted in the second half of Q1 2022.
Resistance level to watch: $37.3k
Support level to watch: $34k
Disclaimer: Opinions expressed are not investment advice. Do your research.
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