The Bitcoin(BTC) price retest of the overhead resistance trendline teases a breakout entry for interested buyers. However, 50 EMA offering constant resistance to the price action may interrupt the potential rally.
The BTC price consolidates rally over the last few days
The BTC price bullish breakout to overhead resistance
The intraday trading volume in the Bitcoin is $27.3 Billion, indicating a 3.2% gain
The early May sell-off in the largest cryptocurrency-Bitcoin breached some significant psychological levels such as $35000 and $30000. As a result, the extended correction slumped the price to a new lower low of $27600.
However, the BTC price started to coil up above the fresh low and initiated a consolidation phase. As a result, this range-rally getting hammered from a descending trendline shows lower higher formation in the 4-hour time frame chart.
On May 14th, the BTC price rebounded from the $26800 support twice within a week, suggesting an accumulation zone for buyers. Furthermore, the coin price is 5% up today and attempts to reclaim $30000.
A potential breakout from the resistance trendline would drive the coin price $50 higher to $10 high to $33000
However, the aligned resistance of the descending trendline and 50 EMA may undermine the recovery rally.
The 50 EMA aligned with the descending trendline accentuates the weightage of the overhead resistance. Moreover, a bearish sequence of these EMAs keeps the sellers in charge.
Despite a sideways rally in price action, a significant bullish divergence in MACD and line suggest growth in underlying bullishness. Moreover, a recent bullish crossover among these lines gives an additional boost to long trades.
Resistance level- $35000, and $40000
Support level- $33000 and $30000
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.