Bitcoin Medium-Term Price Analysis

Without an obvious catalyst, Bitcoin (BTC) price has experienced a flash crash early Friday trade. At the moment, the BTC market is experiencing low volatility after facing resistance at the $8,260 price level. The bulls had tested the $8,260 resistance level twice before falling to the support of the 26-day Exponential Moving Average. The market has fallen to a low at $7,745.10. On the downside, if the bears break the support of $7,745.40, the price of Bitcoin will decline to the $7,000 price level.

On the other hand, if BTC bulls defend the $7,745 support level, the price will climb to the previous high of $8,250 level. From the Fibonacci tool, the bears have broken the 0.236 and 0.382 retracement levels, an indication that BTC price has dropped to the downtrend zone. The downtrend is likely to continue to the 0.618 Fib. retracement level which was the previous support level. Later on, Bitcoin market will commence its upward trend to the previous highs. However, the daily Moving Average Convergence Divergence (MACD) line and signal line which are above the zero line, indicating a buy signal.

BTCUSD Short-Term Price Analysis

Looking at the 1-hour chart, BTCUSD price is in a bearish trend zone. On May 16, the BTC market experienced a sharp decline after the bulls met resistance at the $8,300 price level. The bears broke the 12-day EMA and the 26-day EMA to reach the bearish trend zone.

And now, sellers are most likely to locate the previous low at $7,720 support level. Nevertheless, if the bulls defend this level, the Bitcoin price will commence its bullish trend. In the meantime, the MACD line, as well as the signal line, are below the zero line, which is an indication of a sell signal.

  • Resistance Levels: $8,250, $8,500, $8,250
  • Support levels: $7,750, $7,500, $7, 250

Disclaimer

Arathur Stephen is not registered as an investment adviser with any federal or state regulatory agency. The Information above should not be construed as investment or trading advice and is not meant to be a solicitation or recommendation to buy, sell, or hold any cryptocurrencies. The information is solely provided for informational and educational purposes. Always seek the advice of a duly licensed professional before you make any investment.

The post Bitcoin Price Plunges After Recent Rally: Will The Volatility Continue? appeared first on Latest Crypto News.



This content is synced from the rightful owners. Copyright on text and images belong to the original source.

--
This article was first published on: Latest Crypto News