Technical Analysis for BTCUSD for 10th May 2023
Bitcoin Volatility Drops, Will April Support Line Hold?
Past Performance of BTC
Bitcoin prices are drab, trading inside a narrow range in a predominantly bearish formation. Although the bears of May 8 weren't confirmed, the failure of bulls to push higher points to weakness. As it is, the immediate support line remains at $27k. Conversely, how prices react at $28.3k and $30k may shape the short-term trend.
Bitcoin Technical Analysis
Overall, the trend is bullish from a top-down preview. Sellers are pressing lower but have failed to break below the multi-week support at $27k. This line also flashes with April 2023 lows. If broken, the coin could drop to as low as $25k in a bear continuation formation. All the same, this breakout should be with expanding volumes. Notice that prices are generally in range after the expansion of mid-March which also had high trading volumes. The current consolidation has low participation levels, pointing to possible cautious traders.
What to Expect from BTC
The upside momentum remains, but it is vital to see how prices react at $27k and $28.3k. Though prices dropped on May 8, the failure of follow-through at the back of generally lower trading volumes is a concern. A breakout below the immediate support line would break the bulls' resilience, allowing for the next leg down.
Resistance level to watch: $28.3k
Support level to watch: $27k
Disclaimer: Opinions expressed are not investment advice. Do your research.
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