Bitcoin experienced a significant breakdown attempt on May 12th, as it attempted to move past the monthly support of $27,000-$26,786. Despite these challenges, buyers managed to counteract the selling pressure by pushing up the prices with a long tail formation. This rejection candle demonstrates that buyers are still defending this support, which increases the possibility of a bullish reversal in the near future.
Key Points:
– A resistance trendline has been governing the current correction phase of Bitcoin.
– A breakdown below $27,000 will intensify the selling pressure and could lead to a 7% decrease in the coin’s value.
– The intraday trading volume of Bitcoin is $9.75 billion, a 49.5% gain.
At the time of writing, Bitcoin is trading at $26,874, a slight intraday loss of 0.12%. However, the lower price rejection candle displayed in the daily chart suggests that buyers continue to accumulate at this support level.
This reversal sign indicates that Bitcoin might rebound from this support and surge about 7% higher to hit the combined resistance of $28,700 and the downsloping trendline. This resistance trendline has been steering the ongoing correction and maintaining the upper hand for sellers against buyers.
The ongoing correction in Bitcoin’s price is expected to continue as long as the overhead resistance remains intact. A potential breakout from this trendline would signal an early indicator of an uptrend resumption, which could help buyers rechallenge the $31,000 peak.
Technical Indicators:
Exponential Moving Average (EMA): Along with the $27,000 support, the 100-day EMA slope provides additional support for Bitcoin’s price.
Directional Movement Index (DMI): The DI+ slope moving below the DI- slope indicates a bearish trend in Bitcoin’s price. Furthermore, the ADX slope at 25% demonstrates that the selling momentum has sufficient strength.
Bitcoin Price Intraday Levels:
– Spot rate: $26,897
– Trend: Sideways
– Volatility: Medium
– Resistance levels: $28,700 and $30,000
– Support levels: $27,868 and $25,000
In conclusion, Bitcoin’s recent breakdown attempt reveals an increasing supply pressure in the market. However, buyers have managed to counteract this pressure and maintain support at the $27,000-$26,786 level. The reversal sign implies a potential bullish reversal, with the possibility of the coin surging to hit the resistance levels of $28,700 and $30,000.
However, there is still significant selling pressure, and a breakdown below $27,000 can result in the coin’s value tumbling by 7%. To sustain the bullish movement, buyers need a breakout from the current resistance trendline to signal an early sign of uptrend resumption.
Market participants should continue monitoring the intraday trading volume and Bitcoin’s support and resistance levels while being mindful of the overhead selling pressure. By analyzing the price action, investors can make informed decisions on when to enter the market and benefit from the potential upcoming price surge.