Crypto Daily: Bitcoin Prepares to New Growth

May 18, 2021
07:05
2 min reading

Choise.com team

In general, the market is starting to recover from a strong crash over the weekend.

At the same time, the growth of altcoins exceeds the growth of the first cryptocurrency. This is evidenced by the declining dominance of Bitcoin in the market, which is already 40.1%. Let’s take a look at the chart of the first cryptocurrency and try to figure out if we can expect a reversal.

The 4-hour chart shows that the chart has already made attempts to return to the ascending channel, but it failed. As a result, this provoked a strong fall to the $42,000 mark. Since yesterday, the price has been fluctuating in the $42,000 – $45,000 range.

At the same time, one can notice a significant increase in trading volumes on the chart, during which buyers predominated. And this surge is not a single one, but a constant one. This is a good sign, as many market participants bought Bitcoin during this fall. Thus, they have shown their strength and hold the important resistance level of $40,000.

MACD is very oversold but has already stopped its downward trend. Now, this oscillator is in a sideways direction and the trend is completely absent on it. It can be assumed that in the near future, both moving averages will turn upward, following the price of Bitcoin.

A similar picture is observed for Stochastic. This indicator has been near the oversold line for the last few days but does not go lower. If the price today can show an increase of at least 2-3%, then this will help the oscillator to reverse and it will start an uptrend.

The RSI broke through the lower border on May 13th, and all this time was in the sideways. However, since yesterday, its line began a smooth upward reversal and has almost approached its middle line. This is a great sign for the continued growth of the Bitcoin price.

Exactly the same picture can be observed on the daily timeframe. 2 indicators out of 3 have already begun to turn upwards from their bottom, and the third is slowing down its decline.

Yesterday was a great time to buy. We expected to see this development and warned you about it. The price has every opportunity for new growth, which may become a correction of the fall. In this case, Bitcoin will retest the boundary of the ascending channel in the $53,000 – $55,000 range. This means that from current levels, we expect Bitcoin to grow by 15% – 20%.