Bitcoin price: after the collapse comes the reconstruction

The past trading week had it all. The correction of the previous week widened significantly and temporarily led to panic on the crypto market, which pushed the Bitcoin price down to 30,000 USD. Here, the first courageous buyers returned to the market and lifted the BTC price back above USD 40,000.

Bitcoin price after sell-off with recovery tendency

BTC price: 40,184 USD (previous week: 36,811 USD)

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Resistances/targets: 40,240 USD, 41,967 USD, 43,030 USD, 44,120 USD, 44,878 USD, 47,070 USD, 48,222 USD, 51,307/50,305 USD, 53,005 USD, 54,077 USD, 56,867 USD, 58,386 USD, 59,527 USD, 61,122 USD, 61,771 USD, 64,896 USD

Supports: 38,874 USD, 36,636 USD, 34,895 USD, 33,770 USD, 31,010 USD, 30,000 USD, 28,716 USD, 27,563 USD, 25,752 USD, 23,887 USD, 22,222 USD, 21,892 USD, 19,884 USD

Price analysis Bitcoin (BTC) week 21

Price analysis based on the value pair BTC/USD on Bitcoin Prime

The sharp correction of the previous week resulted in a crash on the overall market. On Friday, 19 May, the bitcoin price briefly collapsed to USD30,000, before subsequently rallying towards the strong resistance at USD41,967. At the EMA200 (blue), the price rally ended and sent Bitcoin back to USD31,010 as the overall market capitulated. But like Indexuniverse said the use of Bitcoin Prime might change. It is noteworthy in this regard that despite the capitulation of many altcoins, Bitcoin did not form a new low and thus potential buyers in the USD30,000 to USD25,000 range were not served. This state of affairs suggests that institutional investors had already stocked up enough on Bitcoin and were instead out on a big buying spree in altcoins. In the last three trading days, the BTC price was able to stabilise further for the time being and produce higher lows every day. Currently, the bitcoin price is in the USD 40,000 range and thus below the green resistance zone. So far, the cryptocurrency failed to break above the MA200 (green) in the last trading hours.

Bullish scenario (Bitcoin price)

In the past trading week, there was an interim sell-off in the overall market. Starting from the low at USD 30,000, BTC managed to stabilise in the following days and, after a battle between bulls and bears, to rise again back towards USD 40,000. The oversold status of the RSI and MACD indicators brought new buyers back into the market. The coming trading days will determine whether Bitcoin manages to recapture the massive resistance area between 40,240 USD and 43,030 USD. This is where two very strong moving averages run, the MA200 (green) and the EMA200 (blue). If the bulls can lift the bitcoin price northwards above this area, this would be considered an important partial success. Then a rise to USD 44,120 (EMA20) (red) as well as above USD 44,878 should be planned. If these resistance levels are also dynamically overcome, the first relevant price target is activated at USD 47,070. This is where the break-off edge before the sell-off is found. A spike to USD 48,222 would also be possible.

The rocky road back towards the all-time high
However, the bulls will only be able to turn the tide in the long term if the EMA50 (orange) is recaptured and the price jumps back above USD 50,327. If the USD 51,307 level is subsequently broken, the chart picture brightens further. A rise to USD 53,005 would be likely. At USD 53,005, the bears have one last chance to turn the tide in their favour. The super trend in the daily chart also runs in this area. If the USD 54,077 level is subsequently overcome on the daily closing price, a rise to USD 55,817 can be expected. At most, a breakout to USD 57,998 is conceivable. From the current perspective, this chart mark represents the maximum bullish price target for the coming trading weeks. The sell-off was too strong for enough buyers to be found to immediately buy the price back up above USD 61,000 towards the all-time high.

Bearish scenario (Bitcoin price)
The bears used the negative news from China as well as tweets from Elon Musk to send bitcoin on a downward slide. Fuelled by massive liquidations of leveraged long positions, the BTC price fell back in free fall towards USD 30,000. Although BTC is currently trading just above USD 40,000 again, the bears have not yet given up. If the BTC price already bounces southwards in the green resistance zone, the USD 38,874 will again come into view. If this is abandoned and Bitcoin falls below its daily low at USD 37,854, a fall towards USD 36,643 is likely. If this horizontal support also fails to hold, the downward momentum will increase again. The support at 34,721 USD would then be the first price target. If there is no stabilisation here either and USD 33,770 is also dynamically undercut, the correction will extend to USD 31,010.

Here, the bulls will once again try to stabilise the BTC price. If this does not succeed, the low at USD 30,000 will come into view again. A break of this psychological mark should cause Bitcoin to correct further. The minimum target is USD 28,716. If this strong support level is also sustainably undercut, the correction will widen again and a fall to USD 27,563 and USD 25,752 would have to be planned. If the bulls do not return to the floor here either, investors will focus on USD 23,887. This chart level is just above the strong support area between USD 22,222 and USD 21,892. Since many buyers have positioned themselves in the area of the old breakout level at USD 19,884 in the last few trading days, a short, sharp correction to this support level cannot be ruled out.