Bitcoin Analysis Update on May 22, 2024
1. Price Trend:
Bitcoin’s price accelerated, breaking above the $70,000 level. Bitcoin even surged above $71,200 but faced selling pressure near $72,000. A new weekly high was formed at $71,896, and the price recently started a downward correction, falling below the $71,000 level. However, bulls remain active above the $68,800 support area. Currently, the price is consolidating near $70,000, trading above $69,000 and the 100-hour simple moving average. Unless it breaks below $68,800, Bitcoin may rise again in the short term.
2. Potential Upside Opportunities:
Bitcoin is currently facing resistance near the $70,500 level. The first major resistance could be at $71,200, with the next key resistance possibly at $71,850. A clear break above the $71,850 resistance level could push the price up to test the $72,500 resistance. If the bulls drive the price further, it could move towards the $73,200 resistance and potentially aim for the $74,500 resistance level.
3. Potential Downside Risks:
If Bitcoin fails to break the $71,200 resistance, the immediate support on the downside is near the $69,200 level. The first major support is at $69,000, with the next major support forming near $68,800. If the decline continues, it might lead to a short-term drop to the $67,300 support area.
4. Technical Indicators:
Hourly MACD — The MACD for BTC/USD is currently losing momentum in the bullish zone, indicating that the upward momentum in the market is weakening, which could signal a potential trend reversal.
Hourly RSI — The RSI for BTC/USD is currently above the 50 level, suggesting that buying strength still prevails.
Resistance levels:
First resistance: 70500
Second resistance: 71200
Support levels:
First support: 69200
Second support: 68800
Trading direction: Short
Entry position: 71500–71700
Stop loss: 72500
Take profit: 70200–70000
Trading direction: Long
Entry position: 69600–69400
Stop loss: 68600
Take profit: 71200–71500
Disclaimer: The article is contributed by the market analyst from Bitop market observation team. The content is solely for personal opinions and sharing. The analysis is time-sensitive and provided for reference and discussion only. It does not constitute any investment advice. The market is risky, so investing should be done cautiously.
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