Bitcoin (BTC) Price Analysis – May 21
In the last 48-hours of trading, Bitcoin’s price has been hovering around the $8000 as the largest cryptocurrency decides on the market direction is yet to play out. Though, BTC remains bullish as the buyers aimed at the $8800 after retesting the previous high on Sunday. However, the sellers win the battle.
BTC/USD Long-term Trend: Bullish (1D chart)
Resistance levels: $8400, 8800
Support levels: $7200, $6400
After the last week bearish surge to around the $6100 area; the buyers regained the control of the market, pushing up the price action back to above the $8000, where the strength of the bulls lies. Since yesterday, the sellers have been trying to drop BTC price below the $8000.
But the buyers seemingly react fast to the selling pressure, targeting $7200 support. However, the Bitcoin market appeared positive on the daily MACD despite the last Friday bearish surge. The bulls’ position has shown strong momentum in the market.
Meanwhile, the daily RSI revealed the last week sudden drop from the overbought zone. For a bullish continuation, a close resistance may be located at the $8800 and above.
BTC/USD Medium -term Trend: Bullish (4H Chart)
On the medium-term graph, Bitcoin has been following a wedge for the past a week after rising from the $5200 late last month. The bulls are still in control of the market. Meanwhile, the indicators are reading bearish as they continue to remain in a slope direction.
The bearish play on the 4-hours RSI suggested a possible decline for the BTC market. Similarly, the important MACD revealed a downward move as well. If the market falls below the neutral levels of the indicators, we may consider a bearish divergence move for Bitcoin on the 4-hour chart.
While ranging atop the wedge, the market may drop to the wedge support of $7200. Below the wedge lies the $6800, $6400 and $6000 support. A break up may lead to a bull-run, retesting the $8400 before establishing fresh highs.
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