Technical Analysis – BTCUSD gets rejected by 50-day SMA
May 30, 2023 11:27 am
BTCUSD (Bitcoin) had been generating a structure of lower highs and lower lows after peaking at the 10-month high of 31,064 in mid-April. Nevertheless, after two weeks of consolidation, the king of cryptos spiked to the upside, with the price temporarily jumping above its 50-day simple moving average (SMA) before paring some gains.
The momentum indicators are reflecting a cautiously positive tone. Specifically, the stochastic oscillator is ascending near the 80-overbought zone, while the RSI crossed above its 50-neutral mark.
If the bulls manage to push the price higher, immediate resistance could be met near the 50-day SMA, currently at 28,140. Surpassing that zone, Bitcoin could ascend towards the crucial 30,000 psychological level. A break above that region may open the door for the 10-month peak of 31,064.
Alternatively, bearish actions could send the price to test the recent double-bottom region of 25,785. Piercing through that wall, the bears might aim for the 25,250 resistance, which could serve as support in the future. Even lower, the 21,375 hurdle could provide downside protection.
Overall, BTCUSD attempted to escape its short-term rangebound pattern to the upside, but the 50-day capped its advance. Thus, a clear break above the latter is needed to revive bulls’ hopes for a trend reversal.
BTCUSD (Bitcoin) had been generating a structure of lower highs and lower lows after peaking at the 10-month high of 31,064 in mid-April. Nevertheless, after two weeks of consolidation, the king of cryptos spiked to the upside, with the price temporarily jumping above its 50-day simple moving average (SMA) before paring some gains.
The momentum indicators are reflecting a cautiously positive tone. Specifically, the stochastic oscillator is ascending near the 80-overbought zone, while the RSI crossed above its 50-neutral mark.
If the bulls manage to push the price higher, immediate resistance could be met near the 50-day SMA, currently at 28,140. Surpassing that zone, Bitcoin could ascend towards the crucial 30,000 psychological level. A break above that region may open the door for the 10-month peak of 31,064.
Alternatively, bearish actions could send the price to test the recent double-bottom region of 25,785. Piercing through that wall, the bears might aim for the 25,250 resistance, which could serve as support in the future. Even lower, the 21,375 hurdle could provide downside protection.
Overall, BTCUSD attempted to escape its short-term rangebound pattern to the upside, but the 50-day capped its advance. Thus, a clear break above the latter is needed to revive bulls’ hopes for a trend reversal.
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