Bitcoin Price Analysis – May 31

Azeez Mustapha
  • If the price reaches $8,000, a short trade should be initiated with a stop loss above $8,000.
  • If the price reaches $7,000, a long trade should be initiated with a stop loss below $7,000.
  • A stop loss will stop the advancement of any breakout.

Bitcoin, BTCUSD, CryptoCompare chart

BTCUSD Medium-term Trend: Ranging

Resistance: $7,750, $7,700, $7,650

Support: $7,450, $7,500, $7,550

Yesterday, 30 May, Bitcoin price attempted to make a comeback at $7,500. The asset price broke the bearish trend line, indicating a reversal of the trend. Yesterday, it was stated that long positions could be initiated if the $7,500 price level was holding. Today, Bitcoin is trading at $ 7,576.79 at the time of trading.

However, the weekly chart shows that the Bitcoin price has not been able to establish itself above $7,500. The asset has been fluctuating below and above $7,500, since 24 May, 2018. When the asset price is range-bound, then the breakout of such asset is imminent. Meanwhile, traders can trade the range-bound movement.

If the price gets to the support level at $7,000, a long trade should be initiated with a stop loss below $7,000. If the price gets to the resistance level at $8,000, a short trade should be initiated with a stop loss above $8,000. A stop loss will stop the advancement of any breakout.

BTCUSD Short-term Trend: Ranging

Bitcoin, BTCUSD, CryptoCompare chart

The daily chart shows Bitcoin in a ranging market. The price is ranging from the resistance level at $7,500 to the support level at $7,300. At a lower time frame, you can initiate a long trade at the support level. Then put your stop loss below the support level. The asset is in a range-bound movement at the support level, with a bullish movement upwards.

The views and opinions expressed here do not reflect that of CryptoGlobe.com and do not constitute financial advice. Always do your own research.