Bitcoin Price Reversal To $40k But Selling Pressure Still Remains High.
2021-05-20 | Eddy Morgan
After yesterday’s 14% plunge, Bitcoin [
BTC] clawed back to around $40k within the Asian hours but remained
struggling.
Sharp price swings
became the norm
in the week as the broader uptrend weakens
almost like 2018, which was
the beginning of a
market.
Bitcoin faces resistance around $45k, defined by the 50-period volume-weighted moving average on the 4-hour chart.
The RSI [Relative Strength Index] remains oversold on the 4-hour chart, although buyers are on the sideline as volatility rises.
Bitcoin is stabilizing
around the 200-day moving average. A decisive break below $40k would signal a trend shift from bullish to bearish.
Lower support is seen around $27k which
might be a roughly 60% retracement of the March 2020 low.
“$27k might also be a more realistic gauge of support given the shortage of oversold purchase signals, which is perhaps a function of how briskly the pullback unfolded,” explained Katie Stockton of Fairlead Strategies within an official interview.
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