Technical Analysis for BTCUSD for 25th May 2022
Bitcoin is in a 14-day consolidation; will BTC hold above $28.7k?
Past Performance of BTC
BTC prices are inside a $3.5k trade range for two straight weeks with clear support at $28.7k. Technically, BTCUSDT is within a bear breakout formation, and the current pattern is a bear flag. Therefore, until there is a definite breakout, either above $32k or $28.7k, traders should stay on the sidelines waiting for trend definition. At spot rates, BTC is stable on the last trading day, adding two percent.
Bitcoin Technical Analysis
BTC bulls have failed to close above $32k and the May 11 bear bar. As such, prices are still trending within a bearish shadow until there is a clear breakout. A welcomed close above $32k will signal the end of the bear run, with May 9 and 11 bars as climactic. On the flip side, a dashing close below last week's lows could usher in another leg down, possibly pushing BTC back to early 2021 territory.
What to Expect from BTC
Overall, traders are confident as sentiment shifts. Still, as BTCUSD moves horizontally inside a bear candlestick, price action is skewed for sellers. Before traders commit, a clear close on either side of the range would define the immediate and medium-term price trend.
Resistance level to watch: $32k
Support level to watch: $28.7k
Disclaimer: Opinions expressed are not investment advice. Do your research.
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