Bitcoin (BTC/XBT) Daily Technical Analysis 2021/05/24
Price Action
Bitcoin has been in a sustained downtrend since the break of the Head and Shoulders pattern at 42K. Since then, support has been continuously flipped into resistance, as we can see at the 42K level and at the 38-39K zone. As Im typing this, we are once again in one of these support/resistance flip zones. 35.5K was the last point of breakdown, and we are now retesting this zone. It will be very important to see if bulls can finally have a minor win and reclaim the 35.5K zone and close above 36K. If bulls can manage this, then we might see bullish momentum come in and start to break the many resistance levels above. If bulls fail here and again turn support/point of breakdown into resistance, then we are likely going to break below 30K
Market Structure
Bitcoin is now trading in a descending channel after the V-shaped bounce from the crash to 30K. Price actually tested and bounced off of the channel support at 31K, which gave price the momentum to retest the breakdown point of 35.5K. In a descending channel, price generally move down while bouncing between the top and the bottom of the channel, until price prices one way or the other. The bottom of the channel is getting very close to 30K, so if we break the channel to the downside, then very like we will also be breaking 30K.
Key Areas
Some key levels to watch for:
1. The current level of 35.5K: a break above will shift momentum from bears to bulls while a rejection here will continue the overall bearish trend
2. 30-31K: This is the confluence of the bottom of the channel and the low of the crash. This level must hold or we could crash much lower
3. 38-39K: If bitcoin is able to reclaim 35.5K, then the next resistance level will be the 38-39K zone. It will likely also line up with the top of the channel and the 200 period moving average, so likely will be a strong resistance. It is the level that we must break to continue the bull run.
As always, everything is just my opinion and not financial advice, DYOR, and stay safe!
Bitcoin has been in a sustained downtrend since the break of the Head and Shoulders pattern at 42K. Since then, support has been continuously flipped into resistance, as we can see at the 42K level and at the 38-39K zone. As Im typing this, we are once again in one of these support/resistance flip zones. 35.5K was the last point of breakdown, and we are now retesting this zone. It will be very important to see if bulls can finally have a minor win and reclaim the 35.5K zone and close above 36K. If bulls can manage this, then we might see bullish momentum come in and start to break the many resistance levels above. If bulls fail here and again turn support/point of breakdown into resistance, then we are likely going to break below 30K
Market Structure
Bitcoin is now trading in a descending channel after the V-shaped bounce from the crash to 30K. Price actually tested and bounced off of the channel support at 31K, which gave price the momentum to retest the breakdown point of 35.5K. In a descending channel, price generally move down while bouncing between the top and the bottom of the channel, until price prices one way or the other. The bottom of the channel is getting very close to 30K, so if we break the channel to the downside, then very like we will also be breaking 30K.
Key Areas
Some key levels to watch for:
1. The current level of 35.5K: a break above will shift momentum from bears to bulls while a rejection here will continue the overall bearish trend
2. 30-31K: This is the confluence of the bottom of the channel and the low of the crash. This level must hold or we could crash much lower
3. 38-39K: If bitcoin is able to reclaim 35.5K, then the next resistance level will be the 38-39K zone. It will likely also line up with the top of the channel and the 200 period moving average, so likely will be a strong resistance. It is the level that we must break to continue the bull run.
As always, everything is just my opinion and not financial advice, DYOR, and stay safe!
Comment:
While we are not out of the woods yet, not by a long shot, bulls did just have its first small victory since the crash to 30K. Bulls have reclaimed the latest support/resistance level of 35.5K and have closed above, negating immediate bear momentum. The next level to watch on the upside is the 38-39K, where we got rejected from 2 times. On the downside, 35.5K is now flipped to support. Will keep updating.
Comment:
bitcoin is getting close to testing the formidable 38-39K zone, where we got rejected twice before. lets see if we can power through this time
Comment:
Bitcoin is being squeezed between the resistance of channel top + 200MAs and support at the 38-39K zone (this zone Ive been mentioning multiple times for the past few days). We did briefly close above it, but got rejected from the channel top and 200MAs and now trading in the 38-39K zone again. If we got a clear break and separation from this zone, which would mean wed get above the channel resistance trendline and turn the 200MAs from resistance to support, bulls would be in great shape. Lets see how price action reacts here at the critical 38-39K bull/bear flip zone.
