Bitcoin in a Deeper Correction as Price Fluctuates

May 17, 2021 at 11:15 // News
Coin Idol
The upside momentum will resume once buyers reclaim the $58,000 support

Today, May 17, buyers have pushed Bitcoin (BTC) to the high of $46,000 but are finding penetration difficult at the recent high. Bitcoin is retracing from the recent high.

Bitcoin (BTC) Price Long-Term Prediction: Bullish

Following the rejection at the $50,000 high, Bitcoin price dropped to a $42,321 low at the time of writing. There are indications that the bears are poised to push Bitcoin to the low of $40,000. This is possible if buyers fail to push BTC price on the upside. 

However, if the bears break the $42,000 support, Bitcoin will fall and find support above $40,000. In the previous price action, buyers failed to sustain above $58,000 high which caused Bitcoin to drop to $46,601 low. As price attempted to correct upward, it faced another rejection at $50,000 high. Today, BTC/USD is faced with a deeper correction. The bulls have an uphill task to push BTC price above the $50,000 support and later above $58,000. The upside momentum will resume once buyers reclaim the $58,000 support.

Bitcoin (BTC) Indicator Reading  

Bitcoin has fallen to level 31 of the Relative Strength Index period 14. It indicates that the price is approaching the oversold region below level 30. BTC price has broken below the 21-day and 50-day SMA. It indicates that Bitcoin is in the bearish trend zone and capable of falling on the downside.


Technical indicators:  

Major Resistance Levels – $65,000 and $70,000

Major Support Levels – $50,000 and $48,000

What Is the Next Direction for BTC/USD?

Since May 10, Bitcoin has been in downward movement. The price action has confirmed the Fibonacci level. That is, on May 12, a retraced candle body tested the 38.2%% Fibonacci retracement level. The retracement indicates that Bitcoin will fall to level 2.618 Fibonacci extension or the low of $44,770. 00. From the price action, the BTC price has fallen beyond the Fibonacci level.


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 own research before investing funds.

Show comments(0 comments)