Bitcoin (BTC) Price Analysis – May 23

Key resistance levels: $8500, $9000

Key support levels: $7000, $6600

Rising from the 2018 low at around the $3150 on Bitstamp, Bitcoin market had dramatically climbed in the past few months following the significant cross above the daily 50-day moving average (orange band) in mid-February.

The positive move started to reveal clearly as the price action continued to respect the prominent 50MA, which was and still acting as a support for the market. The rally became more noticeable after the April 2 surge in volatility above the 0.236 ($4381) Fib. level and the important 200-day MA (red band).

While the cryptocurrency traded above the 0.382 ($5400) Fib. level, Bitcoin’s price further surge to the 0.786 ($7268) Fib. level before a slight drop. Meanwhile, a golden cross was signaled on April 23 as the daily 50MA broke through the daily 200MA.

After closing bearish at around the $6950 on May 12, Bitcoin breached the 0.786 ($7268) fib. level to the current 2019 all-time high, posted around the $8400 level.

From this above price level, BTC slumped below the 0.618 ($6386) fib. level due to the bearish surge that hit $6100. With immediate response, the bulls reacted to the sudden drop as they pushed price back above the $7000 before double-topping price the $8400 last weekend.

Since the retest at $8400 level, Bitcoin has remained subdued in the past three days of trading due to low volatility. Looking at the daily RSI technical indicator, the market is reflected downward after reaching the extreme overbought condition. Although, BTC positive climb was clearly revealed on the indicator since December 2018.

As of now, the buyers appeared weak. If the bears can pull price below the $7000, we may see Bitcoin fall to around 0.5 ($5767) fib. level, testing the daily 50MA.

However, the overstretched market needs a healthy correction around the $4500, the April 2 surge level before fueling the next bull-run, which is likely around the $8500 and $9000. A possible correction may meet support at the 0.236 fib. level, sitting on the 200MA.