- On the upside, a bullish break at the $8,250 resistance level will propel the price to reach the $8,500 price level.
- On the downside, if the bulls fail to break the $8,250 resistance level, the price will fall into the range bound zone.
BTC/USD Medium-term Trend: Ranging
- Resistance Levels: $8,250, $8,500, $8,250
- Support levels: $7,750, $7,500, $7, 250
Last week the price of Bitcoin was in a sideways trend. On May 14, the bulls failed to break the $8,250 resistance level and as a result, the market was ranging below the $8,250 price level. In the previous week, the bulls tested the $8,250 resistance level on three occasions and the price was in a downward correction.
In the first downward correction, the price fell to the support of the EMAs. In the second downward correction, the market fell and formed support level at the $7,250 price level. In the third downward correction, the crypto’s price fell to the support of the 12-day EMA. The coin is now trading above the 12-day EMA and the 26-day EMA which indicates that price is likely to rise.
On the upside, a bullish break at the $8,250 resistance level will propel the price to reach the $8,500 price level. On the downside, if the bulls fail to break the $8,250 resistance level, the price will fall into the range bound zone. Nevertheless, the daily MACD line and signal line are above the zero line which indicate a buy signal.
BTC/USD Short-term Trend: Bearish
On the 1-hour chart, the BTC price is in a bullish trend zone. On May 19, the crypto’s price reached a high of $8,250 resistance level but was resisted. The bears broke the 0.236 (23.6%) Fib. retracement level but found support at the 0.382 (38.2%) level. This indicates that the price is in the continuation zone of the Fibonacci retracement level.
In other words, the bulls are likely to resume their upward move. From the price action, if the bears break the 26-day EMA, the market will fall and resume a downward move. Meanwhile, the MACD line and the signal line are above the zero line which indicates a buy signal.
The views and opinions expressed here do not reflect that of BitcoinExchangeGuide.com and do not constitute financial advice. Always do your own research.
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