BTCUSD Medium-term Trend: Bearish
Resistance: $8,300, $8,200, $8,100
Support: $7,700, $7,800, $7,900
Yesterday, May 17, the BTCUSD pair was range-bound between the support level at $8,000 and the resistance level at $9,000. For the past four days, the asset has been stable in this region. Yesterday, it was assumed that if the price broke the support level, Bitcoin would fall to either $7,000 or $6,685 lows. On the other hand, if the bulls are in control, the price will break the resistance at $9,000 and reach other highs.
Bitcoin is trading at $8,015.50 at the time of writing. Nevertheless, the weekly chart shows the price in a smooth downtrend. A bearish trend line is drawn and it has the following content: firstly, it has pointed arrows showing the resistance levels where you can place your short trades. You can put your stop loss above the trend line; secondly, you can see the price touching the trend line as it pulls back.
In a downtrend, the price makes a series of lower highs and lower lows. If the price retraces from the recent low, a resistance level would be created, thus giving traders the opportunity to short their trades. However, if the price breaks the support level at $8,000, Bitcoin will fall to $7000. But if that level holds, the asset will continue with its range bound movement.
BTCUSD Short-term Trend: Bearish
At $8,300, Bitcoin was ranging before it fell to $8,000. At the support level, the asset resumed its range bound movement.
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