BTC Price Strikes $30000; Breakout Or Fakeout?

The Bitcoin(BTC) price retest of the overhead resistance trendline teases a breakout entry for interested buyers. However, 50 EMA offering constant resistance to the price action may interrupt the potential rally. 

Key points: 

• The BTC price consolidates rally over the last few days
•  The BTC price bullish breakout to overhead resistance
• The intraday trading volume in the Bitcoin is $27.3 Billion, indicating a 3.2% gain

Source- Tradingview

The early May sell-off in the largest cryptocurrency-Bitcoin breached some significant psychological levels such as $35000 and $30000. As a result, the extended correction slumped the price to a new lower low of $27600.

However, the BTC price started to coil up above the fresh low and initiated a consolidation phase. As a result, this range-rally getting hammered from a descending trendline shows lower higher formation in the 4-hour time frame chart. 

On May 14th, the BTC price rebounded from the $26800 support twice within a week, suggesting an accumulation zone for buyers. Furthermore, the coin price is 5% up today and attempts to reclaim $30000.

A potential breakout from the resistance trendline would drive the coin price $50 higher to $10 high to $33000

However, the aligned resistance of the descending trendline and 50 EMA may undermine the recovery rally. 

Technical indicator-

The 50 EMA aligned with the descending trendline accentuates the weightage of the overhead resistance. Moreover, a bearish sequence of these EMAs keeps the sellers in charge. 

Despite a sideways rally in price action, a significant bullish divergence in MACD and line suggest growth in underlying bullishness. Moreover, a recent bullish crossover among these lines gives an additional boost to long trades.   

• Resistance level- $35000, and $40000
• Support level- $33000 and $30000

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.