Bitcoin Crashes When It Reaches Resistance At $28,400

May 29, 2023 at 08:56 // Price
Coin Idol
Bitcoin is trapped by the moving average lines

Bitcoin (BTC) price is crossing the moving average lines as it is rising. However, the rising trend was stopped by the 50-day line SMA. In other words, Bitcoin is trapped by the moving average lines.

Bitcoin price long-term forecast: bullish

The price of one bitcoin is currently $28,028. The price of BTC rose to a high of $28,452 yesterday before falling. Buyers have failed to keep the price above the moving average lines or the $28,000 resistance level. When the moving average lines are broken, the largest cryptocurrency will enter the downtrend; for example, the downtrend will resume when the bears get stranded below the 21-day line SMA. The market will fall and regain its previous low at $25,857. However, the rejection of the recent high will force Bitcoin to resume its movement between the moving average lines.

Bitcoin indicator display

At the 56 level of the Relative Strength Index for the 14 period, Bitcoin is in the uptrend zone. There is a possibility that the cryptocurrency value will continue to rise. The price bars are between the moving average lines, which signals the beginning of the range bound trend. The market has become overbought due to the recent rally. It is above the 80 level of the daily stochastic. Conclusion: Bitcoin is expected to fall as it faces resistance in the overbought sector of the market.

BTCUSD(Daily Chart) – May 29.23.jpg

Technical Indicators:

Key resistance levels - $30,000 and $35,000

Key support levels - $20,000 and $15,000

What is the next direction for BTC/USD?

After the recent rally, Bitcoin is now in the bullish trend zone. As Bitcoin has reached the bullish exhaustion, the uptrend has been restricted in the overbought zone. Bitcoin is currently retreating after encountering resistance at $28,400. If it falls back above the 21-day line of SMA and holds there, the movement will start within the trading range.

BTCUSD_(4 –Hour Chart) - May 29.23.jpg

Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their research before investing in funds.

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