Bitcoin Price Prediction – May 31
The Bitcoin price trades below the 9-day moving average as the bulls failed to break into the upside.
BTC/USD Long-term Trend: Bearish (Daily Chart)
Resistance Levels: $43,000, $45,000, $48,000
Support Levels: $30,000, $27,000, $24,000
At the time of writing, BTC/USD is correcting upwards as the bulls strive to take over, temporarily putting an end to the wide-scale bearish market trend. There have been instances when BTC has exchanged hands below $32,000 sustaining the bearish price action is a downhill task. Meanwhile, the path of least resistance is still downwards as a glance at the daily chart shows the formation of a bearish pennant pattern.
Bitcoin Price Prediction: Any Hope for the Bitcoin Price?
Looking at the technical indicator Relative Strength Index (14) in the daily range, the Bitcoin price is not yet done with the downside. Despite the drop suffered, the RSI (14) did not stay long within the oversold zone as this could mean that there is still room that could be explored by the bulls. However, BTC/USD may likely begin to follow the short-term uptrend as the bulls push the price towards the 9-day and 21-day moving averages.
On the upside, recovery may not come easy but support will have to be sort for above the moving averages. Meanwhile, a sustainable move above this barrier is located around the $40,000, which may negate the bearish scenario and allow for an extended recovery towards the resistance levels at $43,000, $45,000, and $47,000. However, an increase in selling pressure across the market could force the Bitcoin price to face a painful path towards the supports at $30,000, $27,000, and $24,000.
BTC/USD Medium-Term Trend: Ranging (4H Chart)
Looking at the 4-hour chart, the Bitcoin bulls are now pushing the market price above the 9-day and 21-day moving averages. Meanwhile, BTC/USD has survived the $30,000 support as the market resumes upside momentum. However, the first digital asset is likely to return to the bull market if the price breaks above the $38,000 level. Higher resistance is located at $40,000 and above.
In other words, if the pennant support caves in, even $33,500 may not be able to hold the support if the Relative Strength Index (14) drops below 50-level. More so, the coin is likely to fall to $35,000 and below if the Bitcoin price falls below the 9-day and 21-day moving averages.