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Monday, May 15, 2023

Bitcoin: potential for downside holds

Bitcoin: potential for downside holds

Bitcoin / U.S. dollar BITSTAMP:BTCUSD

The banking crisis at the beginning of March this year, impact strong move of crypto coins, especially BTC to the upside, when BTC reached level of $30K resistance line. During this time, we mentioned in our analysis that unfortunately, this was not a healthy move to the upside, as it was mostly driven by emergency flows of banking deposits to the crypto market, as a “safe haven” for people who were just trying to secure their savings and funds. Since the March this year, it was clear that exhaustion will come and that reversal of BTC`s price would be inevitable. Charts were pointing to this move, for some time. During the previous week, the price of BTC took a clear road to the downside when the price could not hold anymore above the $28K as a short term stop. Lowest price reached during the week was $25.8K, however, BTC is ending the week around $26.8K.

RSI is clearly on a road toward the oversold side of the market, reaching level of 37 during the end of the week. It shows that the price could still go a bit to the downside, when a clear oversold side will be reached. At the same time, the moving average of 50 days is slowing its divergence from MA200, indicating on a potential that soon it might start a convergence road.

The market has clearly broken the short term stop for BTC at $28K, which opened the way toward the 25K support line. This level has not been tested during the previous week, but increases the probability to be tested in the coming week(s). RSI is also showing some potential for the downside until a clear oversold side is reached. Taking all this into account, there is some probability that the $28K short term resistance line will be tested in the coming week, before the BTC takes its final move toward the 25K support.

Via TradingView Ideas https://ift.tt/K0kidaB

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