Bitcoin Price Prediction: BTC/USD Consolidates Below $40,000
Bitcoin Price Prediction – May 22
Currently, the daily chart reveals that Bitcoin (BTC) lacks strong resistance on the upside.
BTC/USD Long-term Trend: Bearish (Daily Chart)
Key levels:
Resistance Levels: $45,000, $47,000, $49,000
Support Levels: $30,000, $28,000, $26,000
BTC/USD is hovering at $38,076.65 facing the key resistance of $40,000 but it’s been rejected and now trading sideways. However, if the Bitcoin price continued to consolidate in this way, traders could soon see it break above the mentioned level of key resistance and it could then be obvious to target the potential resistance of $42,000. In other words, traders may see a larger decline in the coming days if the coin breaks below the lower boundary of the channel.
Bitcoin Price Prediction: Possible Next Direction for BTC/USD
BTC/USD remains in the consolidation mode hovering below the 9-day and 21-day moving averages which may decide the next move. In addition, it can be expected that the market may begin to sell should in case the coin breaks lower. Therefore, if the bulls continue to show a strong commitment, the Bitcoin price could rise above the 9-day MA and may reach the potential resistance levels of $45,000, $47,000, and $49,000 as the Relative Strength Index (14) indicator is recovering from the oversold region.
At the moment, the daily chart shows that the weak upward momentum may be affecting the Bitcoin bulls, although bears may likely bring the price below the channel which could lead the Bitcoin price to the supports of $30,000, $28,000, and $26,000 in the next negative moves.
BTC/USD Medium-Term Trend: Bearish (4H Chart)
The 4-hour chart shows that the Bitcoin price touches the high of $38,250; this barrier may likely slow down the bulls as the coin may consolidate below the 9-day and 21-day moving averages before breaking below the channel to reach the critical support at $35,000 and below as the technical indicator Relative Strength Index (14) moves around 44-level.
On the upside, if the market price maintains the uptrend and the technical indicator confirms it, the nearest resistance levels may come at $40,000 and any further bullish movement above the channel could reach the resistance level of $41,000 and above.
