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Bitcoin Downtrend Intact; Support at $37K
A decisive breakout or breakdown could occur this month.
Updated May 11, 2023, 3:52 p.m. Published May 2, 2022, 6:43 p.m.
Bitcoin (BTC) has been in a short-term downtrend since late March, confirmed by a series of lower price highs. That indicates persistent selling pressure, although support at $37,500 could sustain the current price range.
Further, BTC has been anchored around $40,000, the midpoint of a three-month price range, which suggests indecision among buyers and sellers.
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Typically, BTC consolidates within a three-month price range following an extreme move such as the 50% sell-offs that occurred after the April and November price peaks around $64,000 and $69,000 last year. That means a decisive breakout or breakdown could occur sometime this month.
On the weekly chart, bitcoin has experienced a loss of upside momentum, which suggests limited upside beyond the $46,000-$50,000 resistance zone. A bearish set-up on the monthly chart increases the risk of a breakdown in price.
For now, BTC is on watch for a countertrend bullish signal on the weekly chart, per the DeMARK indicators. If confirmed, BTC could experience a brief price bounce, consistent with strong seasonal trends in May.
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Bitcoin Jumps to $99K as Spiking Coinbase Premium Points to Strong U.S. Buying
Spot BTC prices were at times $300 pricier on Coinbase relative to Binance, suggesting the rally may be driven by heavy demand from American investors.
What to know:
- Bitcoin surged towards $100,000 on Wednesday's U.S. trading session, gaining 3.2% in the past 24 hours.
- The rally coincided with significant spot BTC price premium on Coinbase.
- Fed Chair Jerome Powell called bitcoin a competitor to gold during a panel discussion.
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