A technical rebound that could continue! – While the threat of a plunge below the $ 20,000 support has been looming for a few weeks, Bitcoin (BTC) has been able to pull away from it momentarily. So much so that it approaches its next resistances. Which would seem enough to pause its race to the bottom since the last ATH in November 2021.
The latest technical analysis would confirm this short-term momentum with favorable technical signals starting to multiply. Especially since the hope of a slowdown in inflation in the United States could favor the extension of the technical rebound. And we imagine this scenario materializing, cryptocurrency investors might be pleasantly surprised to see a return of the cryptocurrency king after a more than gloomy period since the last failure below the $ 46,000 resistance.
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From the end of March, Bitcoin would have its best week looking forward to the weekend. But the reassuring point is the convergence of prices near the resistance of $ 26,000 and the Tenkan. So much so that one might get the impression that the technical rebound would only be in its infancy, and not a flash in the pan, unless the increased risks on the financial markets resume in intensity.
This convincing jump coincides with the rebound of the Chikou Span from the $ 20,000 support, which in turn would soon tickle the $ 26,000 resistance. However, the fact remains the price position of BTC and the Chikou Span relative to the Kumo (Ichimoku cloud) has hardly changed since the week of May 2nd. Especially since this status quo could last for many weeks.
In the event of a cross between Tenkan and $ 26,000, we would validate the end of the last bearish wave from failure below the $ 46,000 resistance in late March, so a possible return to the $ 30,000 resistancewho hasn’t been far off the downline since his last ATH in November 2021.
Bitcoin in daily units – Triple bottom validation
If Bitcoin ended the week as it started, this would fully validate the triple bottom in daily units. Even better, breaking the $ 22,000 resistance to the upside, prices temporarily re-enter the Kumo. Furthermore, a throwback at this level would be in the pipeline to confidently attack the $ 26,000 resistance. Which would help prolong the technical rebound.
In this sense, crossing $ 26,000 would push BTC prices past Kumo. This would open the door to the $ 30,000 resistance. Thanks to a more rapid upward movement, it would not be excluded that the king of cryptocurrencies positively threatens the descending line of the current bearish race.
In summary, we probably have confirmation of a pause in Bitcoin’s race to the bottom since its last ATH in November 2021. The real question for many investors is whether we can hope for something better than a technical rebound. Not only the $ 30,000 resistance could be a big hurdle. But even crossing the descending line would not be enough to see a favorable trend reversal.
As mentioned in several market points on the king of cryptocurrencies, the trajectory of the future Kumo in weekly units invites us (and not the conditional) once again to be cautious. The episodes of stress since the beginning of the year have generated a crisis of confidence in cryptocurrencies. The latter will not be erased with a snap of your fingers.
So when the technical rebound comes to an end, I wouldn’t be surprised by another huge dump signaling a definitive bullish capitulation. If so, BTC prices would again threaten the $ 20,000 support and, why not, the $ 12,000 support, the final level of the last bull run.
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