Technical Analysis for BTCUSD for 16th May 2022
Bitcoin Stabilizes, BTC is Bearish Below $32k
Past Performance of BTC
There are flashes of strength as per the BTCUSDT candlestick arrangement in the daily chart. Despite the encouraging recovery, BTC bulls are not out of the woods, at least for now. Bitcoin prices are still within a bearish breakout formation. Besides, bulls are yet to reverse recent losses, and prices are within last week's trade range. BTC is down roughly 10 percent at spot rates in the previous trading week.
Bitcoin Technical Analysis
The path of least resistance is southwards even amid the end of last week's gains. There are higher highs relative to the lower BB at spot rates. Risk-on sellers may search to liquidate on every recovery below $32k and $34k. These are immediate liquidation lines marking highs of May 11 and 9, respectively. If bulls fail to pierce above this buffer zone, BTC may drop to last week's lows of around $26.7k. Conversely, sharp gains above $34k may be the impetus for another leg up to $37.3k.
What to Expect from BTC
Bitcoin and crypto traders are apprehensive, as trading volumes show. After the climactic dump of May 9 and 11, participation levels tapered. Still, sellers have the upper hand as BTC is below $32k.
Resistance level to watch: $32k
Support level to watch: $26.7k
Disclaimer: Opinions expressed are not investment advice. Do your research.
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