Over the past five days, the Bitcoin price has been oscillating in a narrow range between $27,300 and $26,700, generating a sense of uncertainty in the crypto market. During this time, the coin price demonstrated failed attempts to surpass these range barriers, reflecting traders’ ambivalence on either side. This article will attempt to determine the most likely outcome for Bitcoin’s price using technical analysis.
A breakdown below $26,700 may set Bitcoin’s price for a 5% drop, while a bearish crossover between the 20- and 50-day Exponential Moving Average (EMA) may encourage more selling orders in the market. The intraday trading volume in Bitcoin is $12.5 billion, indicating a 3.3% gain.
The ongoing price movement suggests indecisiveness and a sideways trend in Bitcoin, with prices following a short-term correction phase influenced by a channel pattern. On May 15th, Bitcoin’s price displayed a long-wick rejection from the range resistance of $27,300, indicating that sellers are aggressively rejecting higher prices. Consequently, the coin price declined 2% in the last two days, and now it is prepared to challenge the lower support of $26,700.
A daily candle below the aforementioned support will likely replenish selling pressure, causing prices to plummet by 5% to reach the lower trendline of the wedge pattern.
On the other hand, if prices cannot sustain below the $26,700 support level, the ongoing consolidation may continue for a few more sessions. In contrast, traders seeking long opportunities should wait for a breakout above the overhead trendline.
Concerning technical indicators, Bitcoin’s price is trading above the 200-day EMA slope, suggesting that it remains bullish in the long term. However, a downsloping in the Moving Average Convergence Divergence (MACD) accentuates the ongoing downtrend in Bitcoin’s price.
Bitcoin’s price intraday levels are as follows:
Spot rate: $26,661
Trend: Bullish
Volatility: Medium
Resistance levels: $27,300 and $29,100
Support levels: $27,000 and $25,200
It is important to note that the presented content may include personal opinions of the author and is subject to market conditions. It is essential to conduct thorough market research before investing in cryptocurrencies. Neither the author nor the publication holds any responsibility for individual financial losses.
Source: Coingape
