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Bitcoin Trading: BTC Is Back Above $8000, What’s Next?

Bitcoin (BTC) Price Analysis – May 24

For the past 10 days, Bitcoin has traded below the $8400 as the buyers struggled to surpass this level. Ever since, the price level has become a strong resistance for the market. If the $8400 level breaks, Bitcoin might set a new price at around $8800. However, the sellers’ target is at$7600.

BTC/USD Long-term Trend: Bullish (1D chart)

Key Levels:
Resistance levels: $8500, $8800
Support levels: $7600, $7200

The bullish scenario is still intact as Bitcoin continued to climb upward. The bulls are back above the $8000 after a three days pull to $7600, which has now been a support level for the market. The $8400 is getting tougher for the bulls.

BTCUSD-1D-Chart-May-24

If they manage to surpass the above level, BTC trading might touch the $8500 before visiting the $8800. Meanwhile, the white 50-day moving average has been playing along with the positive move. A bounce down, however, could floor the price at $7600. Below this level lies the $7200 support.

Considering the technical indicators, the daily RSI has pulled back from the overbought region due to a three days sell-off. On the daily Stochastic RSI, Bitcoin lies in the oversold territory.

BTC/USD Medium -term Trend: Bullish (4H Chart)

Bitcoin has constructed an ascending triangle formation on the medium-term outlook as price close-up the angle of the trend line. BTC is currently testing the triangle resistance which could lead to a break or rejection. This formation is mostly and commonly followed by a bullish break.

BTCUSD, 4H Chart – May 24

The $8500 is more likely to provide resistance for a potential break. Meanwhile, the $8250 level has been strongly in the hold of buying pressure. A bounce low may locate support at the $7600. Beneath the triangle lies further support at $7250, this could welcome the bears into the market.

While Stochastic RSI is reflected at the overbought territory, the RSI has raised above the 50 level; revealing the 24-hour surge. Still, the important 50-day MA (white) continued to support the market.

Please note: insidebitcoins.com is not a financial advisor. Do your own research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.

 

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      Azeez Mustapha is a technical analyst with many years trading experience in the stock exchange and crypto markets. He has broad experience in forex trading, coaching, and funds management.