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Technical Analysis for BTCUSD for 24th May 2023

Bitcoin Selling Pressure Falling, Will Bears Take Charge?

Past Performance of BTC

Bitcoin prices ended up higher yesterday but closed with a long upper wick suggesting a sell-off in lower timeframes. This was confirmed with the spill off today, forcing prices lower. Moreover, while there were notable gains, associated trading volumes were lower than expected. Therefore, although bulls are optimistic and expecting more, traders should adopt a wait-and-see approach. Specifically, gains above $28.3k may pump prices. However, BTC remains within a trading range with clear resistance and support levels, trending lower at spot rates.

Bitcoin Technical Analysis

The horizontal consolidation of BTC prices continues, reading from the development in the daily chart. Even though bears have the upper hand, at least per the recent price action, the downside momentum is fading. Bear bars are moving away from the lower BB, suggesting lower selling pressure. At the same time, prices are moving back to the middle BB, suggesting low volatility. The $28.3k resistance line and the middle BB are immediate resistance levels. On the lower end, support is at $25.8k. Therefore, without a comprehensive close above either reaction lines, conservative traders can wait for a clear trend definition.

What to Expect from BTC

The upsides remain from a top-down preview. However, sellers appear to be in control, peeling back gains from late April. As it is, bears appear to be in control, provided resistance is at $28.3k. Any drop below the current trade range's low at $25.8k will cancel bullish attempts, paving the way for even more liquidation in the short term.

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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