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BTC Technical Analysis: BTC Back Above $30, Prepares to Stay

cryptoknowmics.com 20 May 2022 04:38, UTC
Reading time: ~2 m

BTC prices find a sudden increase in bullish momentum as it regains the $30K mark and prepares a bull run to $33K. Should you join the buying spree? Key technical points:

  • BTC prices have increased by 4.59% in the last 24 hours.
  • The fast line touches the slow line to give a bullish crossover.
  • The 24-hour trading volume of Bitcoin is $34.16 Billion, reflecting a 12% rise. 

Past Performance of BTC

The early May sell-off in the largest cryptocurrency-Bitcoin breached a significant psychological level of $30000. As a result, the extended correction slumped the price to a new lower low of $27600. However, after that, the BTC price began to spiral above the low it had just set and started the consolidation stage.  Furthermore, to bearish surprise, the price of Bitcoin is up 5% today and is trying to get back $33080. However, the resistance aligned with the descending trendline, and 50 EMA could weaken the rally to recover. TradingView Chart Source-Tradingview

BTC Technical Analysis 

After approaching the 50-day EMA, we can see a halt in the downtrend and an increased number of bullish breakout attempts above $0.075. The recent effort shows a 4.76% bullish engulfing candle breaching the 200-day EMA with increased trend momentum. The crucial daily EMAs maintain a downtrend, with the recent 100 and 50-day EMAs providing dynamic resistance to bullish reversal attempts.   The RSI indicator reflects a boom in bullish impact on the price direction as the RSI rises above the boundary of the oversold zone with a dramatic V-shaped reversal. Therefore, the increase in RSI values boosts the likelihood of a prolonged uptrend. The MACD indicator shows an increase in the speed line following a strong upward trend, resulting in a bullish crossover and increasing the odds of a trend reversal. In short, the BTC technical analysis projects a high chance of a bullish uptrend sustaining above $30K.

Upcoming Trend

Considering that the bullish influence continues to grow on BTC prices, a prolonged uptrend will reach the $33080 level before crossing it to $35K. However, a bearish takeover resulting in a $30K fallout will retest the low $27600. Support Levels: $28650 and $27600 Resistance Levels: $33080 and $35K

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