Bitcoin Price Analysis: BTC Price Rebounds From 10-month lows; Is $34,000 possible?

By Rekha chauhan
May 10, 2022 Updated May 10, 2022
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BTC price started the session on a muted note and fell lower quickly to retest the levels last seen in July. But, the price recovered swiftly and managed to gain the $32k mark. However, the current price action could be counted as a dead cat bounce in technical terms. The upside bounce seems limited as BTC retreated from the session’s high.

  • BTC price crashes below $30k for the first time since July 2021.
  • The bullish RSI divergence on the hourly chart suggests a feasible bounce back toward $34,000.
  • However, the downside risk remains intact below $30k.

As of publication time, BTC/USD is trading at $31,600 up 5.07% for the day. The most traded and famous cryptocurrency is holding a 24-hour trading volume of $81,110,432,617 with whooping gains of 90%.

A rising volume with the gains in price is generally a bullish sign.

Another important parameter to understand is the Fear & Greed index which further fell to 10 from 11 in the last session due to the panic selling mood among investors.

BTC price remains vulnerable

Source: Trading view

On the hourly chart, the BTC price has a roller coaster ride since Thursday. In 10-day, the token depreciated by almost 21%. The downward momentum pushed the price near to the multi-month lows as the selling momentum still continued. The major support around $30k is being challenged by the sellers further, a rupture below may lead to an additional drop in price.

Now, a steep fall in BTC price took a pause and is nursing the wounds due expected. The market remains in extended oversold condition demanding a stint of bounce back.

A challenge must be met by the BTC buyers placed at the 50-day ema (Exponential Moving Average) at $32,587. On a successful attack, the horizontal $34,000 level would be the next target for the bulls.

On the opposite side, a rebound in the investor’s bearish sentiment could pull the price lower. A break below the session’s low would fuel the next round of selling in the asset.

The hourly Relative Strength Index (RSI) fell giving bullish divergence supporting the sharp bounce back in the price..

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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