In this Bitcoin price analysis, BTCUSD gained a strong bullish momentum as it broke the resistance levels and traded close to the $9,000 level. What is next?
Bitcoin Price Medium-Term Analysis
In retrospect, Bitcoin (BTC) price was trading in a sideways trend for the past 7 days. The crypto’s price climbed to a high of $8,250 but was nevertheless, resisted by the bears. As a result, BTC price had a downward correction to the support of the 12-day and the 26-day Exponential Moving Averages (EMAs). The price of Bitcoin was trending above the EMAs but was facing another resistance at the $8,000 price level. On May 22, the bears broke the EMAs and the price dropped to the $7,500 support level. On May 23, BTC bulls pulled above the EMAs to reach the bullish trend zone.
Yesterday, May 26, Bitcoin price made a series of higher highs and higher lows and has risen to a high of $8,781.90. On the upside, the price of Bitcoin is likely to reach the $9,000 price level, if the price does not break the bullish trend line. On the other hand, if the trend line is broken, the BTC price will decline. In the meantime, the Moving Averages Convergence Divergence (MACD) line and the signal line are above the zero line which is an indication of a buy signal.
BTCUSD Price Short-term Analysis
Looking at the 1-hour chart, BTCUSD price was in a sideways trend. Last week, the price was horizontally flat at the $8,000 price level as the EMAs were also trending as a horizontal line.
Yesterday, however, the price of Bitcoin rallied to the $8,900 level. At the moment, the crypto is presently facing the $8,900 resistance level. It is having a slight retracement as the traders expect further gains. In the meantime, the MACD line and the signal line are above the zero line which suggests a buy signal.
Resistance Levels: $9,000, $9,250¸ $9,500
Support levels: $8,500, $8,250, $8, 000
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.