At the time of writing, the price of Bitcoin is trading around $7,800 after it recovered sharply during the weekend following a flash sell-off at the end of last week. What next can we expect next? The following Bitcoin price analysis reveals.
Bitcoin Short-Term Price Analysis
For the past 7 days, Bitcoin (BTC) price was trading in a sideways trend. On May 14, BTC bulls were unable to break the $8,250 resistance level which resulted in the market ranging below the $8,250 price level. Moreover, the bulls repeatedly tested the resistance level of $8,250 three times and the price went in a downward correction.
In the first correction, BTC price dropped to the support of the Exponential Moving Averages. In the second correction, the crypto’s price declined and formed support level at the $7,250 price level. In the third correction, the price Bitcoin fell to the support of the 12-day EMA. The coin is now trading above the 12-day and the 26-day EMAs, which is an indication that price is likely to rise.
On the upside, Bitcoin price will climb to reach the $8,500 level if the bulls break at the $8,250 resistance level. On the other hand, if the bulls are unable to break the $8,250 resistance level, the price will plunge into the range bound zone. Nevertheless, the daily Moving Average Convergence Divergence (MACD) line and the signal line are above the zero line which indicates a buy signal.
BTCUSD Short-Term Price Analysis
Looking at the 1-hour chart, BTCUSD price is in a bullish trend zone. Yesterday, the price of BTC rose to a high of $8,250 resistance level but was resisted as the bears broke the 0.236 (23.6%) Fib. retracement level and found support at the 0.382 (38.2%) level. This is an indication that BTCUSD price is in the continuation zone of the Fibonacci retracement level.
This means that the bulls are likely to resume their upward trend. From the price action, if the bears break the 26-day EMA, the Bitcoin price will drop and commence a downward move. In the meantime, the MACD line and the signal line are above the zero line which indicates a buy signal.
- Resistance Levels: $8,250, $8,500, $8,250
- Support levels: $7,750, $7,500, $7, 250
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.