Bitcoin (BTC) Price Analysis: A Quick Look at the Fib Levels (42-May)

SHARE

SHARE

Table of Contents

What is Bitcoin (BTC) Doing Right Now?

Bitcoin is currently trading around the $29,500 mark and has been consolidating since the second week of May. As mentioned in our previous analysis, the price is bouncing back and forth between the resistance at $30,800 and the support at $28,600. Once the price breaks out of this zone only then we can expect the volume to flow. Let’s take a quick look at the recent charts for Bitcoin and identify levels that can possibly come into play in the short term.

Margin traders can trade Bitcoin and Ethereum with up to 100x leverage on ByBit. Use this link to sign up and earn a free bonus on your initial deposit.

ByBIt-logo-white@2x
Score Up to $30,050 on Bybit — Just for Trading

Analyzing the Charts

If we use the Fibonacci retracement tool on the 4-hour charts from swing-high to swing-low, we can see that the .618 level is acting as strong resistance at the moment.

It can be clearly seen that the price drops rapidly whenever the 0.618 level is challenged. That means that the bulls are not pushing at the moment and there is not enough buying pressure in this zone at the moment.

On the other hand, we can also notice that the 0.382 level of the Fibonacci is holding nicely as support.

If the price breaks below the 0.382 level we can expect a big move towards the downside. In that case, a further correction would be expected towards the bottom level of the Fibonacci.

In the bullish scenario, the price will have to break above the resistance at 0.618 and 0.786 to start a relief rally.

Conclusion: What is Next for Bitcoin (BTC)

Bitcoin is still in a consolidation phase and might not move out of it for another couple of days. The trading volume is quite low at the moment and no external factor is driving the price in the immediate short term. If we do see some latest news for Bitcoin, related to regulations or adoption, we can then expect the price to make a big move. Otherwise, the price is being squeezed and it will eventually make a move in the coming days.

neutral_ta

Margin Trading for Beginners

If you are interested in leverage trading Bitcoin, you can go through our Margin Trading Guide to learn more about it. You can also check our list of top crypto exchanges to choose the platform that best suits your needs.

PrimeXBT Covesting: Copy Trading

Sign up on PrimeXBT today to trade Bitcoin hassle-free. You can copy experienced traders and access hundreds of different strategies! Don’t forget to claim a bonus of up to $7000 by using the promo code “bitcoinsensus50” with our link.

[primexbt]

Disclaimer: The content provided in this article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. Any actions you take based on the information provided are solely at your own risk. We are not responsible for any financial losses, damages, or consequences resulting from your use of this content. Always conduct your own research and consult a qualified financial advisor before making any investment decisions. Read more

Join our Legends Community Today!
Gain access to exclusive insights, trading setups 
and daily market reports.

SHARE

Related Post

Buy / Sell Bitcoin

Rating: 90%

Conveniently buy/sell Bitcoin with EUR

binance

Rating: 85%

World’s largest crypto exchange

Our Favourite Trading Platform

Rating: 98%

Claim up to $30,050 in Bonus

100x Leverage

Rating: 90%

Grab Exclusive Up To 400USDT Bonus

Rating: 90%

Sign Up and Earn up To $9400 in Rewards

Follow Us