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Technical Analysis for BTCUSD for 16th May 2023

Bitcoin Floats Higher, Gains Could be Short-Lived

Past Performance of BTC

The rejection of lower prices on May 12 was the foundation that anchored yesterday's gains. BTC prices are above $27k when writing and look solid, reading from the candlestick arrangement in the daily chart. Overall, BTC may recover. Whether buyers will flow back depends on if prices break above $28.3k in the session ahead.

Bitcoin Technical Analysis

Though prices are higher, trading volumes are relatively thin, and BTC remains within a bear breakout formation. At this stage, sellers are still in a commanding position. Notice that prices are still inside the May 10 to 12 trade range, swinging price action to favor sellers from an effort versus result perspective. In the days ahead, there must be a conclusive close above the $28.3k and $30k, with expanding volumes, for buyers to take charge. Conversely, any contraction pushing prices below last week's lows at $25.8k may trigger more dumps towards $25k and $22.5k in a bear-trend continuation formation.

What to Expect from BTC

Sellers have the upper end despite yesterday's gains. This preview holds if prices are below the $28.3k and $30k zone. Moreover, prices are higher with lighter volumes, meaning participation is still lower; suggesting weakness.

Resistance level to watch: $28.3k

Support level to watch: $25.8k

Disclaimer: Opinions expressed are not investment advice. Do your research.

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