Amid the mounting supply pressure in the market, the Bitcoin price demonstrated a decisive breakdown attempt from the monthly support of $27,000-$26,786 on May 12th. However, by day’s end, buyers nearly undermined the entire selling pressure, pushing prices up with a long tail formation. This rejection candle denotes that buyers continue to defend this support, suggesting a possible bullish reversal.
The current correction phase in the Bitcoin price is governed by a resistance trendline. A breakdown below $27,000 would increase selling pressure, causing the coin to tumble by 7%. The intraday trading volume in Bitcoin is $9.75 billion, signaling a 49.5% gain.
At the time of writing, the Bitcoin price traded at $26,874 with an intraday loss of 0.12%. Nevertheless, the lower price rejection candle displayed in the daily chart reveals that buyers continue to accumulate at this support level. This reversal signal indicates that the BTC price could rebound from this support and surge about 7% higher to meet the combined resistance of $28,700 and the downsloping trendline.
The resistance trendline has been carrying the ongoing correction in Bitcoin, aiding sellers in having the upper hand against buyers. Consequently, the current correction will persist until the overhead resistance is in place.
A potential breakout from this trendline would signify an early sign of uptrend resumption, potentially assisting buyers in re-challenging the $31,000 peak.
Regarding the technical indicators, the 100-day Exponential Moving Average (EMA) slope provides additional support to the BTC price, along with the $27,000 mark. The Directional Movement Index (DMI) demonstrates a bearish trend in Bitcoin price, with the DI+ slope moving below the DI- slope. Furthermore, the ADX slope at 25% signifies that the selling momentum has adequate support.
As for Bitcoin’s intraday price levels, the spot rate is at $26,897. The trend is currently sideways, with medium volatility. Resistance levels to watch for are $28,700 and $30,000, and support levels are at $27,868 and $25,000.
It is crucial to perform thorough market research prior to investing in cryptocurrencies, as the presented content represents the personal opinion of the author and is subject to market conditions. The author and the publication hold no responsibility for any personal financial losses.
Source: Coingape
