Bitcoin (BTC) – Stabilized around 30,000, but needs to mold additional traction

Bitcoin (BTC) – Stabilized around 30,000, but needs to mold additional traction

Posted on Monday, May 23 2022 at 9:19 pm GMT+0000

Bitcoin (BTC) continues to sideline around the 30,000 mark for the second consecutive week, some distance below the mid-Bollinger band, following the bounce off the multi-month low of 25,400.

Nevertheless, the momentum indicators are currently suggesting an increase in the buying appetite as the Awesome Oscillator has been on the rise lately, while the stochastic oscillator is holding a positive charge and the %K and the %D lines are flirting with the 50-neutral threshold.

Should the positive momentum intensify further, and the crypto king post a clear victory beyond the mid-Bollinger band and the last week’s high of 31,400, it may climb to the 33,000 – 34,300 area, where the 2/1 Gann fan angle, stretched from the March 28th peak, is also located. Should the bulls successfully overrun this congested resistance zone, they will visit the region encompassing the March 7th inside swing low and the upper-Bollinger band at 37,100 and 37,500 respectively. Piloting beyond the latter and the 3/1 Gann angle, they will march toward the April 21st top at 42,900.

On the flip side, if sellers re-emerge, they will initially fight the lower-Bollinger band, and the May 12th low of 25,400. By breaching that crucial base, they will push towards the December 2017 inside swing high of 20,650 and the adjacent 20,000 psychological level.

All in all, although Bitcoin has gained some ground in the last few sessions, the bulls need to mold additional traction to overstep the 33,000 – 34,300 region and feed optimism for further bullish developments.