This week, the price of Bitcoin was influenced a lot by politics and the creation of an agreement to increase the debt ceiling in the United States. But, as Matěj Široký states in his detailed analysis, this is more of a formality. No one wants US insolvency. But it also creates tension in the Bitcoin market. Today we will look at technical analysis (TA) of Bitcoin charts. What the indicators tell us and where the price could move in the following period.
A short-term view
Looking at the 4-hour chart, we see this week relatively stable. The price oscillated between $25,850 and $27,527. A difference of about 6.5%. In the second half of the week, we can notice higher volumes always at the opening of the New York Stock Exchange. The RSI indicator is very close to the value of the overbought market. Above us is the 50-day exponential moving average ($27,370). From a short-term perspective, I would rather expect a decline. A possible retracement to $26,850 where one of the Fibonacci levels is.
A long-term view
On the daily chart, we again see the change on the MACD indicator nicely. A possible bullish crossover and upside potential is forming. But this does not confirm the RSI, which is almost in the middle of the neutral field. From a historical point of view, we are in a relatively strong zone of recent months. Above us is the 50-day moving average and below us a relatively uninteresting field. On the downside, stronger support is looming around USD 25,000.
Conclusion
Technical analysis shows the market’s relative indecision. Both bulls and bears defend their key positions and the price changes only minimally. This week it looks like the weekly candle might close green, but the monthly is still glowing red. This is related to the slow increase in short positions, which contrasts with the constant volume of long positions. All this is underlined by the dominance of Bitcoin at the edge of 48%, where in the past there has often been a reversal followed by an altcoin rally.
The market is now calm and stagnant. It is waiting for some trigger. Maybe it will come this week. The end of the month is always a little livelier. Both bulls and bears are fighting for the final shape of the moon candle. However, I personally think that there will be a further decline. We will test $25,000 and possibly lower. However, this is just my opinion and is certainly not investment advice or a recommendation for you. DYOR.
2023-05-28 08:02:09
#Bitcoin #price #prediction #period
