Bitcoin (BTC) – Setting the stage for the next bearish roundPosted on Sunday, May 8 2022 at 9:43 pm GMT+0000
Bitcoin (BTC) suffered heavy losses after a minor short-lived recovery on May 5 motivated by Powell’s not-so-hawkish stance following the last FOMC meeting and plunged to a fresh more than four-month low around 33,700 earlier on Sunday.
The recent drop below 37,100 critically dampened the technical picture and drove the price deep below all the Ichimoku plots.
The Ichimoku directional lines are exhibiting a strong negative charge mirroring persistent bearish forces, while momentum oscillators are sending clear discouraging signals. The MACD is plunging beneath its signal and zero lines, the RSI is stretching its downwards path well below the 50-neutral threshold while the Stochastics haven’t found a pivot point in the oversold area yet.
The crypto-king is currently confronting the January low of 33,000, and a drop lower will squeeze the price to the 30,000 – 28,600 shaped by May and June bottoms. Any violation at this point will accelerate the decline initially towards the 25,000 round psychological number.
If the aforementioned support proves strong enough to neutralize the current sell-off, the price will jump initially to the 37,100 – 37,400 zone. By overshooting this important support turned to resistance barrier where the Tenkan-Sen line also resides, bulls will fight with the May 4th inside swing high at 40,000 ahead of the April 21st high at 43,000. Conquering these obstacles will pave the way to the 45,900 – 48,200 region linked to the February and March peaks.
Summarizing, Bitcoin completely ruined the 2022 pattern of higher highs, and is currently setting the stage for the next bearish round with confirmation expected below 33,000.