Bitcoin (BTC/USD) keeps consolidative tendencies, steadying beneath the crucial levels of $32,845, which represents the 24 January lows. Also, the world’s largest crypto remains under the downside lines formed from the 28 March peak. 5 May sessions saw BTC plunging beneath the bottom area of an upward channel and respected the mentioned downside line, translating to a cautiously negative outlook.
Though Bitcoin consolidates, bears have a decent probability of overtaking the charts again. That would see the crypto declining to retest the 12 May low, near $25,625. A lower break would affirm an impending lower low on BTC’s weekly and daily charts, opening the path for extended plummets towards the 21 December 2020 lower low, near $21,710. Further bearishness would see the bellwether crypto nosediving to 1 December 2020 swing peak at $19,755. These barriers should halt Bitcoin’s slide. Failure to do that can translate to severe losses, with bears pushing to the 26 November 2020 low at $16,135.
The near-term oscillators depict the Relative Strength Index on downtrends after touching the 50-resistance. On the other side, the Moving Average Convergence Divergence stays inside a negative region, though beyond its trigger level. That also confirms topping signals. The indicators suggest a downward pace and back the relative idea of bears dominating again.
Bitcoin needs a massive upswing for bulls to regain control and drive prices higher. An upside past the 27 December 2021 high at $52,045. That would propel the currency beyond the upper border of the aforementioned upward channel. Bulls might extend the upside to explore $57,575 or $59,315, the 3 December and 30 November highs, respectively.
Surpassing the upside barrier would encourage bulls to trigger more uptrends. Bitcoin would climb to explore the 15 November high of $66,275 before eyeing the 10 November peak near $68,835. However, it’s easier said than done.
Bears control the crypto market for now. Bitcoin lacks the momentum to push past $30K. While publishing this content, BTC traded at $30,131, losing 0.64% within the past day. Recession fears and escalated global inflation continue to dent the marketplace.
Stay tuned for the latest updates.