Bitcoin Price Reaches Bearish Exhaustion, Battles Resistance at $40,000 for Upside Momentum

Yesterday, May 19, 2021, BTC/USD temporarily halted its downward move as Bitcoin slumped to a $29,563 low. Now, Bitcoin has chances to resume upward.

Bitcoin (BTC) Price Long-Term Prediction: Bullish

Bitcoin bulls promptly bought the dips as the crypto resumed upward. Buyers have pushed BTC price from the low of $29,563 to the previous highs. The bulls are facing difficulty in penetrating the $40,000 resistance. Bitcoin is consolidating near the resistance zone in the lower time frame. Consolidation near the resistance zone increases the chances of a breakout. 

Nevertheless, there is a long candlestick tail pointing above the $28, 000 support. The long tail indicates that there is strong buying pressure above the $28,000 support. The bulls are buying the dips as the BTC price resumes upward. However, if buyers fail to break the current resistance, BTC/USD will be compelled to a range-bound move between $28,000 and $40,000 for a few days. Meanwhile, Bitcoin is trading at $40,111.90 at the time of writing.

Bitcoin (BTC) Indicator Reading  

Bitcoin has fallen to level 22 of the Relative Strength Index period 14. BTC has fallen into an oversold region of the market. The implication is that buyers are likely to emerge in the oversold region to push prices upward. Bitcoin is also below the 20% range of the daily stochastic which is indicating the same price situation. Bitcoin is likely to resume upward.

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?

Bitcoin Price fell to the support above the $28,000 price levels. From the price action, the BTC price pulled back above the current support with a long candlestick tail. This indicates strong buying support. Similarly, the Fibonacci tool has earlier indicated that BTC price will fall to level 2.0 Fibonacci extension or the low of $30,258. 60. This condition has been met as the crypto moved upward. If the current support holds it will signal the resumption of an uptrend.

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.

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