Bitcoin, as of May 22, 2024, is currently being traded at $69,952. Throughout the day, it has fluctuated between a low of $69,211 and a high of $71,422. Despite a period of volatility, bitcoin has demonstrated resilience by increasing 11.9% over the past week and 5.9% over the past month.
When examining bitcoin’s 1-hour chart, there has been a significant decline from its peak of $71,433 to a low of $69,156. However, there are indications of a potential reversal, suggesting a slight upward movement. Notably, there have been spikes in volume during the downtrend, and a modest increase accompanies the recent upward ticks. If bitcoin can break above the resistance level of $70,000 with strong volume support, traders might consider entering the market and targeting an exit around the $71,433 mark if the uptrend solidifies.
On the 4-hour chart, bitcoin’s broader trend shows a decline from $71,958, with the current phase of consolidation occurring between $69,000 and $70,500. The volume spikes seen during the initial drop have subsided during this consolidation phase. To enter the market, traders should monitor bitcoin’s ability to sustain levels above $70,000 and break through the resistance at $70,500. Potential exits could be considered near the $71,958 mark if there is a decrease in volume.
Taking a longer-term perspective, the daily chart reveals a surge from $56,500 on May 1 to a high of $71,958, followed by consolidation around the $70,000 level. The volume during this surge was strong but has tapered off during the consolidation phase. Traders may look for an entry point if bitcoin closes above $71,000 with rising volume, indicating a possible continuation of the uptrend.
When analyzing the oscillators, bitcoin’s signals are mixed. The relative strength index (RSI) at 70.2 suggests bearish action, while the moving average convergence divergence (MACD) level at 106.1 indicates bullish sentiment. The Stochastic and commodity channel index (CCI) are showing neutral and sell signals, respectively. The awesome oscillator and momentum indicators also present neutral and sell actions, highlighting the market’s mixed sentiment.
Moving averages (MAs) across various timeframes are predominantly bullish. Both exponential moving averages (EMAs) and simple moving averages (SMAs) over 10, 20, 30, 50, 100, and 200 periods indicate bullish action. This consistent bullish trend across moving averages suggests that despite short-term fluctuations and mixed oscillator signals, the longer-term outlook for bitcoin remains positive.
In conclusion, the longer-term outlook for bitcoin remains bullish due to strong buy signals from moving averages and the potential for a continuation of the uptrend if key resistance levels are broken with increased volume. However, caution is advised due to the mixed signals from oscillators and recent consolidation patterns. Traders should be prepared to consider exits or hedging strategies to protect against potential declines if bitcoin fails to break above key resistance levels and bearish patterns emerge.
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