Bitcoin tries to recover above $28k: what to expect ahead?
May 30, 2023 1:22 pm
The two-week lull in the cryptocurrency market has finally ended with a surge in the price of BTC. Within the bullish rally, the asset managed to break through the $27.5k level, thus surpassing the fluctuation zone of $26.6k–$27.5k. This indicates an activation of buyers and gives hope for further price growth of BTC.
Despite the emergence of significant bullish volumes, it cannot be definitively stated that the correction is complete. Bitcoin’s price needs to establish itself above more challenging resistance levels in order to resume attempts at an upward movement towards $30k.
Near-term targets for BTC
Bitcoin experienced a bullish rebound from the $25.5k level, where a strong support area is located. In close proximity to this mark, there is also the 0.382 Fibonacci level and the 365-day moving average, which played a role in maintaining the price of BTC. The strong support level and increased volatility in the cryptocurrency market allowed buyers to re-enter the game.
As of May 30, Bitcoin is trading near the $28k level, with daily trading volumes around $12 billion. Trading activity has locally recovered, but it is not sufficient for a successful breakout of the downward trendline of the 0.236 Fibonacci level near the $27.7k–$28.1k range.
Furthermore, the neckline of the “head and shoulders” technical analysis pattern coincides with the $28k level, which was tested with a decline to $25.5k. The $28k level is a strong resistance zone due to a combination of factors, and its breakout raises doubts. Considering this, the possibility of a resumption of a downward price movement for BTC cannot be ruled out.
Buyers’ targets
In the foreseeable future, a local consolidation of Bitcoin near the $27.7k–$28k level can be expected. For the development of an upward movement, the cryptocurrency needs to establish itself above the downward trendline, with the final barrier being the $28k mark.
Subsequently, buyers need to create a new stronghold for an upward movement towards $30k and beyond. To achieve these targets, a confident and definitive breakthrough of the resistance level at $28.5k–$28.7k is necessary. As of May 30, there is insufficient bullish volume to realize this scenario.
Sellers’ targets
Sellers failed to drag the price below the $25.5k level, which would have cast doubt on the entire upward structure of BTC. Over the past two days, $110 million worth of short positions were liquidated, and it is quite likely that bears will take a local pause. However, their subsequent target will once again be the $25k mark.
To achieve this, sellers need to push the price below $27.8k and further towards the $27.2k–$27.4k range. The faster the price returns to these levels, the quicker bearish activity will recover, enabling a retest of $27k and, subsequently, the $25.5k–$26.5k range.
Conclusion
Bitcoin bulls have taken an important step towards reclaiming positions above $28k. However, sellers’ positions remain strong, and market sentiments remain uncertain. All of this suggests that the price of Bitcoin may either continue its upward movement above $28k or return to a corrective slump below $27.8k.
The material has been provided by InstaForex Company – www.instaforex.com
The two-week lull in the cryptocurrency market has finally ended with a surge in the price of BTC. Within the bullish rally, the asset managed to break through the $27.5k level, thus surpassing the fluctuation zone of $26.6k–$27.5k. This indicates an activation of buyers and gives hope for further price growth of BTC.
Despite the emergence of significant bullish volumes, it cannot be definitively stated that the correction is complete. Bitcoin’s price needs to establish itself above more challenging resistance levels in order to resume attempts at an upward movement towards $30k.
Near-term targets for BTC
Bitcoin experienced a bullish rebound from the $25.5k level, where a strong support area is located. In close proximity to this mark, there is also the 0.382 Fibonacci level and the 365-day moving average, which played a role in maintaining the price of BTC. The strong support level and increased volatility in the cryptocurrency market allowed buyers to re-enter the game.
As of May 30, Bitcoin is trading near the $28k level, with daily trading volumes around $12 billion. Trading activity has locally recovered, but it is not sufficient for a successful breakout of the downward trendline of the 0.236 Fibonacci level near the $27.7k–$28.1k range.
Furthermore, the neckline of the “head and shoulders” technical analysis pattern coincides with the $28k level, which was tested with a decline to $25.5k. The $28k level is a strong resistance zone due to a combination of factors, and its breakout raises doubts. Considering this, the possibility of a resumption of a downward price movement for BTC cannot be ruled out.
Buyers’ targets
In the foreseeable future, a local consolidation of Bitcoin near the $27.7k–$28k level can be expected. For the development of an upward movement, the cryptocurrency needs to establish itself above the downward trendline, with the final barrier being the $28k mark.
Subsequently, buyers need to create a new stronghold for an upward movement towards $30k and beyond. To achieve these targets, a confident and definitive breakthrough of the resistance level at $28.5k–$28.7k is necessary. As of May 30, there is insufficient bullish volume to realize this scenario.
Sellers’ targets
Sellers failed to drag the price below the $25.5k level, which would have cast doubt on the entire upward structure of BTC. Over the past two days, $110 million worth of short positions were liquidated, and it is quite likely that bears will take a local pause. However, their subsequent target will once again be the $25k mark.
To achieve this, sellers need to push the price below $27.8k and further towards the $27.2k–$27.4k range. The faster the price returns to these levels, the quicker bearish activity will recover, enabling a retest of $27k and, subsequently, the $25.5k–$26.5k range.
Conclusion
Bitcoin bulls have taken an important step towards reclaiming positions above $28k. However, sellers’ positions remain strong, and market sentiments remain uncertain. All of this suggests that the price of Bitcoin may either continue its upward movement above $28k or return to a corrective slump below $27.8k.
The material has been provided by InstaForex Company – www.instaforex.com
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