Bitcoin Is Consolidating But Is A Rally Near?
May 26 2022 - 9:00PM
NEWSBTC
Bitcoin has been laterally trading for almost a week now. The coin
has continued to remain under the $30,000 price level. The
technical outlook of Bitcoin could be pointing at a turnaround in
prices on the long term price chart. On the short term price chart
however, king coin’s price action remains quite bearish. At the
time of writing, BTC has seemed to settle a slightly above the
$28,000 support line. In the past 24 hours, the coin lost 1.2% of
its value and in the last week, the coin posted some recovery.
After Bitcoin traded for $28,000, the bulls came to its rescue and
have defended that level. This could be accounted to a positive
change in price at the time of writing. The $28,000 support line is
crucial for Bitcoin as a drop from that level could push the coin
to $24,000 or even lower. Bitcoin Price Analysis: One Day Chart The
cryptocurrency was trading at $29,600 at the time of writing. Over
the past week, the coin has been touching the $30,000 mark and
dipping below it. King coin’s crucial support line stood at
$28,000. Overhead resistance for the coin was at $31,000. Volume of
Bitcoin was green in colour which meant that the bulls were still
struggling to defend the coin in the market. If the bulls slowly
start to enter the market, BTC might re-attempt to move above the
$31,000 price level. A move above the $31,000 price mark will make
buyers re-enter the market and strengthen the positive price action
in the market. Technical Analysis Bitcoin’s technical outlook has
painted a bearish picture on the one-week chart. Even with slight
improvements over the last 24 hours, the coin’s price action was
still weak. The Relative Strength Index was near the oversold zone
but the coin was slightly better than being oversold. Despite the
small uptick, it can barely to referred to as a positive
development. Moving Average Convergence Divergence underwent a
bearish crossover. After the bearish crossover, MACD flashed red
histograms which are tied to sell signal in the market. Although
the technical outlook was bearish, an interesting point can be
noted from the above chart. At the time of writing, BTC was near
the $29,000-$28,000 price range and that’s positive because this
price mark has previously acted as a mark that has fuelled rallies
before (blue). Related Reading | Perp Traders Remain Quiet As
Bitcoin Struggles To Hold $30,000 On the one-month chart, Bitcoin
has showed a chance of positive price turnaround. The Relative
Strength Index of Bitcoin formed a falling wedge pattern. A falling
wedge pattern is bullish. It signifies a trend reversal. A move
above the $31,000 price mark will push BTC near $36,000. Related
Reading | Bitcoin Bearish Signal: Whale Ratio Continues To Stay At
High Value
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