Bitcoin Price Analysis: BTC Price Breaks Toward December 2020 Lows; Is $17,000 Next?

By Rekha chauhan
May 12, 2022 Updated May 12, 2022
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Bitcoin (BTC) Can Test $32,500 On Several Bullish Reasons

BTC price treats the market with no surprises as extends the losses for the second straight day. The price has been in an extended downward trend started since last week. This marks the sixth week of the downfall in a total of 47% deprecation.

  • BTC price trades in red with heavy selling volume as the price crashed more than 20% in two days.
  • Expect more downside as the sellers make their presence prominent below the $28,000 mark.
  • High volume nodes denote no reversion is likely in the short-term, and any upside is very limited.

BTC price continues downside

Source: Trading view

BTC’s price remains fragile near the two-year support level while playing around $28,000. Although, the price already started the decline after tagging the record highs of $69,000, a bounce back from $34,322.0 resulted in an upswing of 29%. But, it remained short-lived as the price retraced back in the April- May series.

In addition to that, the price remains pressured below the 20-day and the 50-day EMAs (exponential moving average), another red signal for BTC. If the price slips below $25,000 on the daily basis, get ready for another downside impulse. In that case, investors shall collect the liquidity extending from $22,000 to $17,000.

On the flip side, a daily close above the session high might produce some relief rally in BTC. First, the price would make an attempt to take out the psychological $32,000 level followed by the 20-day EMA at $35,488.

As of publication time, BTC/ USD is trading at $27,589, down 4.63% for the day. The largest cryptocurrency by the market cap is containing a 24-hour trading volume of $$86,934,588,647, according to CoinMarketCap.

Technical indicator

RSI: The relative strength index approaches the oversold zone. It reads at 22, not far from the lows made in January.

 

Rekha has started as Forex market analyst. Analyzing fundamental news and its impact on the market movement. Later on, develop an interest in the fascinating world of cryptocurrency. Tracking the market using technical aspects. Exploring on-chain analysis to track the market.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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