In this Bitcoin price analysis, the BTCUSD pair is trading in the green as the bulls continue the strong recent run higher above $5700. What is next?
Bitcoin Medium-Term Price Analysis
On May 2, Bitcoin (BTC) price was in a bullish trend zone as the bulls reached a high of $5,760. However, the bulls were resisted and the price retraced to a low at $5,720 and resumed a bullish trend to a new high of $5,808.
Looking at the chart, a bullish trend line which shows the support levels of price where traders can initiate long trades has been drawn. With this trend line, we can decern the duration of the upward trend. Thus, the ongoing bullish trend will continue as long as the trend line remains unbroken.
The price of Bitcoin has broken the resistance levels above $5,600 and $5,700 as it is now above the 12-day and the 26-day Exponential Moving Averages (EMA) which is an indication that that price is in the bullish trend zone. At this point, we can expect the price to rise to a high of $6,000 or $6,500 level. In the meantime, the Moving Average Convergence Divergence (MACD) line and the signal line are above the zero line which suggests a buy signal.
BTCUSD Short-term Price Analysis
Looking at the 1-hour chart, BTCUSD is in a bullish trend zone. The 12-day, as well as the 26-day EMAs, are now pointing northward, an indication that the price is in a bullish trend. If the bears were able to break below the EMAs, BTC price would have declined.
On May 2, the price of BTCUSD climbed to a high of $5,805 and then resumed a range bound movement at that price level. Currently, both the MACD line and the signal line are above the zero line, indicating a buy signal. While Bitcoin price is above the 12-day and the 26-day EMAs, it indicates that the crypto’s price is in the bullish trend zone.
- Resistance Levels: $6,800, $6,900, $7,000
- Support levels: $5,500, $5,400, $5, 300
Arathur Stephen is not registered as an investment adviser with any federal or state regulatory agency. The Information above should not be construed as investment or trading advice and is not meant to be a solicitation or recommendation to buy, sell, or hold any cryptocurrencies. The information is solely provided for informational and educational purposes. Always seek the advice of a duly licensed professional before you make any investment.