Bitcoin (BTC) – Still appears to be under bearish control despite the recent consolidationPosted on Sunday, May 29 2022 at 9:30 pm GMT+0000
Bitcoin (BTC) has been edging sideways over the last couple of weeks, after its downward trajectory hit levels unseen since December 2020. The bearish bias that unfolded from early April is still unharmed, even though downside forces are currently lacking. That is being confirmed by the current price action, which is taking place well below the red Ichimoku cloud.
The Ichimoku directional lines flattened lately, indicating that selling has temporarily stalled, while the momentum oscillators are conveying mixed messages in directional momentum. The momentum indicator is struggling to overcome its equilibrium level, whereas the Awesome Oscillator and the RSI are improving in the negative region, although the latter is revealing weak momentum.
The crypto-king has spent yet another quiet weekend following a brief drop to 28,000 in the middle of the week, and has been chained between that support and the Tenkan-sen line. Any decisive daily close below the former will trigger an immediate test of the May 12th low of 25,400. However, in such a case, sellers are expected to breach that base and reclaim full control, leading the way straight towards the 20,000 mark.
On the upside, the Tenkan-sen line is acting as an initial friction to any positive development. Should it at any time give way, the price could jump towards the mid-May high at 31,400. While within breathing distance, the January and February lows at 33,000 and 34,300 respectively, are shaping another key wall, cemented by the Kijun-sen line and the 38.2% Fibonacci retracement level of the April-May freefall. By knocking down that barricade, the bulls will likely navigate towards the 50% Fibonacci level and the adjacent 37,100 crucial March support. Beyond the latter, the rally could speed up towards the April 21st inside swing high and the 78.6% Fibonacci level at 43,300.
In summary, Bitcoin still appears to be under bearish control despite the recent consolidation in the price, with confirmation awaited below 28,000.