Bitcoin Price Prediction – May 20
After a successful break above $38,000, the Bitcoin price extends its recovery to touch the daily high at $42,605.
BTC/USD Long-term Trend: Bearish (Daily Chart)
Key levels:
Resistance Levels: $50,000, $52,000, $54,000
Support Levels: $28,000, $26,000, $24,000
For the past few weeks, BTC/USD has seen some sharp declines in the crypto market as the price slumped to $30,000 support. The Bitcoin price also settled below the 9-day and 21-day moving averages and the movement is very fragile at the moment. However, during a short-term breakout, critical support levels must be monitored as the first digital asset stays around the lower boundary of the channel.
Bitcoin Price Prediction: Is Bitcoin Bull Run Still Intact?
Looking at the daily chart, the Bitcoin price has increased more than 14% over the past 24 hours to touch the daily high of $42,605. More so, the first digital cryptocurrency was linked to the early hours of Asia, thus consolidating the gains of the previous session. Therefore, a sustained movement of more than $5,000 has improved the technical situation in the long term; however, the critical support of $30,000 could not be interrupted at this time.
0On the upside, if there is an upside break above $43,000 and $45,000, the Bitcoin price could recover towards the $46,000 and $48,000 levels. However, if the price increases and manages to close well above the 9-day MA, traders could see an upward price explosion, which could reach the potential resistance at $50,000, $52,000, and $54,000 levels as the Relative Strength Index is moving out of the oversold zone.
Conversely, there could be more losses if there is no break above the $42,000 level. The main supports on the downside are located at $40,000 and $35,000. Therefore, if there is a downside break below the lower boundary of the channel, the Bitcoin price may accelerate decline towards the support levels of $28,000, $26,000, and $24,000 respectively.
BTC/USD Medium – Term Trend: Bearish (4H Chart)
Looking at the 4-hour chart, BTC/USD should recover above $41,000 to mitigate the short-term bearish pressure and allow for an extended recovery towards $45,000 and above. However, a sustainable move below this level may open up the way towards $38,000.
In addition, the critical support is located at $38,000, and a sustainable move lower could increase the downside pressure and push the price towards the support of $35,000 and below. Considering that the Relative Strength Index (14) signal line is reverting to the downside again, we might expect that more bearish signals to play out.
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