TA: Bitcoin Trims Gains, Why BTC Could Start Fresh Decline
May 18 2022 - 11:28PM
NEWSBTC
Bitcoin extended decline and traded below $29,000 against the US
Dollar. BTC must stay above the $28,500 level to avoid a sharp
decline in the near term. Bitcoin started a fresh decline from the
$30,500 resistance zone. The price is now trading below the $30,000
level and the 100 hourly simple moving average. There was a break
below a connecting bullish trend line with support near $29,600 on
the hourly chart of the BTC/USD pair (data feed from Kraken). The
pair could extend decline if there is a clear move below the
$28,500 support zone. Bitcoin Price Is Showing Bearish Signs
Bitcoin price failed to clear the $30,500 resistance zone and
started a fresh increase. There was a clear move below the $29,500
and $29,000 support levels. Besides, there was a break below a
connecting bullish trend line with support near $29,600 on the
hourly chart of the BTC/USD pair. The pair is now trading below
$30,000 and the 100 hourly simple moving average. It tested the
$28,500 support zone. A low is formed near $28,589 and the price is
now consolidating losses. An immediate resistance is near the
$29,100 level. It is near the 23.6% Fib retracement level of the
recent decline from the $30,742 swing high to $28,589 low. Source:
BTCUSD on TradingView.com The next major resistance is near the
$29,650 level. It is near the 50 Fib retracement level of the
recent decline from the $30,742 swing high to $28,589 low. A clear
move above the $29,500 and $29,650 resistance levels might start a
fresh increase in the near term. The next key resistance could be
near the $30,500 level, above which the price might rise towards
$31,200. More Losses in BTC? If bitcoin fails to gain pace above
the $29,650 resistance zone, it could continue to move down. An
immediate support on the downside is near the $28,800 level. The
next major support is near the $28,500 level. A downside break and
close below the $28,500 support might start a major decline. In the
stated case, the price could drop towards the $27,500 level.
Technical indicators: Hourly MACD – The MACD is now slowly losing
pace in the bearish zone. Hourly RSI (Relative Strength Index) –
The RSI for BTC/USD is now below the 50 level. Major Support Levels
– $28,800, followed by $28,500. Major Resistance Levels – $29,650,
$30,000 and $30,500.
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