A technical rebound that could continue! – While the threat of a collapse below the $20,000 support has been looming for a few weeks, Bitcoin (BTC) was able to move away from it momentarily. So much so that he gets closer to his next resistances. Which would seem to be enough to pause its bear run since its last ATH in November 2021.
The latest technical analysis would confirm this short-term momentum with favorable technical signals starting to multiply. Especially since the hope of a slowdown in inflation in the United States could favor the extension of the technical rebound. And let’s imagine that this scenario materializes, cryptocurrency investors might be pleasantly surprised to see a comeback from the king of cryptos after a more than gloomy period since the last failure below the resistance of $46,000.
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Since the end of March, Bitcoin would live its best week while waiting for the weekend. But the reassuring point is the convergence of prices near the resistance of $ 26,000 and the Tenkan. So much so that one could have the impression that the technical rebound would only be in its infancy, and not a flash in the pan unless the major risks in the financial markets were to regain in intensity.
This convincing jump coincides simultaneously with the rebound of the Chikou Span from the support of $20,000, which itself would soon tickle the resistance of $26,000. However, the fact remains that the price position of BTC and the Chikou Span against the Kumo (Ichimoku cloud) have hardly changed since the week of May 2. Especially since this status quo could last for many weeks.
In the event of a crossing of the Tenkan and $26,000, we would validate the end of the last downward wave since the failure below the resistance of $46,000 at the end of March, then a possible return towards the resistance of $30,000which has been not far from the downline since its last ATH in November 2021.
Bitcoin in daily units – Validation of the triple bottom
If Bitcoin ends the week as it started, this would fully validate the triple bottom in daily units. Even better, by breaking the resistance of $22,000 on the upside, prices temporarily reenter the Kumo. Moreover, a throwback on this level would be in the pipeline to attack with conviction the resistance of $26,000. Which would help prolong the technical rebound.
In this sense, crossing $26,000 would cause BTC prices to pass beyond Kumo. This would open the door towards the resistance of $30,000. Thanks to a faster upward movement, it would not be excluded that the king of cryptos threatens the descending line of the current bear run in a good way.
In summary, we likely have confirmation of a pause in Bitcoin’s bear run since its last ATH in November 2021. The real question for many investors is whether we can hope for better than a technical rebound. . Not only is the resistance of $30,000 likely to be a major obstacle. But even crossing the descending line would not be enough to see a favorable trend reversal.
As we mentioned in different market points on the king of cryptos, the trajectory of the future Kumo in weekly units invites us (and not the conditional) once again to be cautious. The episodes of stress since the beginning of the year have generated a crisis of confidence in cryptocurrencies. The latter will not be erased with a snap of the fingers.
So when the technical bounce comes to an end, I wouldn’t be surprised by another massive dump signaling a definitive bull capitulation. In which case, BTC prices would again threaten the support of $20,000, and why not that of $12,000, the ultimate level of the last bull run.
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