Bitcoin Price Analysis – May 28

Azeez Mustapha
  • The bulls succumbed to the bears after 5 days of contention at the support level of $7,500.
  • The price of Bitcoin is likely to fall to the lows of $7000 and $6,600 as the overall trend is bearish.

Bitcoin, BTCUSD, CryptoCompare chart

BTCUSD Medium-term Trend: Ranging

 Resistance: $7,550, $7,500, $7,450

 Support: $7,250, $7,300, $7,350

Last week, the BTCUSD pair had a bearish outlook all through the week. During the week, price of Bitcoin broke the support level at $8,000. The pair had earlier been ranged bound between the levels of $9,000 and $8,000, since on May 12, 2018. The asset fell from the high of $8,519.79 to the low of $7,350. But it made a pullback to the price above the $7,500 level.

However, the bearish pressure was presumed to be over by the analytical application of a bearish trend line. Nevertheless, the bearish trend came days later.Meanwhile, price of Bitcoin is currently trading at $7,383.08 as at the time of writing.Today, price of Bitcoin has broken the support level at $7,500 to the low of $7,300. Since on May 23, price of the asset had been fluctuating above and below the support level at $ 7,500.

Our previous analysis of price falling to the lows of $7,000 or $6,600 may hold because the asset will not face any resistance until those levels are tested.Meanwhile, the relative strength index period 14 is level 53 indicates that the asset is in a range bound movement

BTCUSD Short-term Trend:Ranging   

Bitcoin, BTCUSD, CryptoCompare chart

On the daily chart, price of Bitcoin is in a range bound movement. The asset is ranging from the levels of $7,400 to $7,300 and the price action seems to be choppy. The asset is likely to fall after it ranges and may test the February 5 low .

 

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