Bitcoin Price Analysis: BTC Price Reclaims $30K Amid Extreme Oversold Market Conditions; Time To Buy?

By Rekha chauhan
May 13, 2022 Updated May 13, 2022
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Bitcoin (BTC) Can Test $32,500 On Several Bullish Reasons

BTC price action exhibits a framework that hints at a possible upward movement. The price opened lower but quickly recovered to the session’s high. BTC tagged the $30k mark after days of downside moment. The current price action hints at a recovery rally although downside risk remains intact.

  • BTC’s price manages to rebound from the swing lows of around $25K.
  • Still, the price remains under downward pressure as the trading volume diverges.
  • The Fear & Greed Index holds at extreme fear levels, at 10.

As of publication time, BTC/USD reads at $30,440.22, up 5.13% for the day. The 24-hour trading volume of the digital asset holds at $53,023,093,119 with a loss of 41%.

BTC price shows a recovery sign

Source: Trading view

BTC price indicates that the pioneer cryptocurrency has the potential to rise from the current levels. As the May series began, BTC’s price lost 36% from the highs of $39,864.55 made on May 5. The massive downswing is the consequence as it sliced the short-term support base extending from $32,000 to $34,000 on the daily chart. However, amid the oversold market structure, there is a fair chance of a recovery in the weekly time frame.

On the weekly chart, the BTC price tested the critical 200-day EMA (Exponential Moving Average) at $26,895.01. This level acted as a strong upside barrier for it with the formation of a ‘hammer’ candlestick. Still, a sustained buying pressure would be required to push the price to pierce and tag the horizontal $34,000 mark.

An acceptance above $34,000 would ask for $42,000, above another crucial moving average, 50-day EMA.

On the contrary, a fall below the session’s low would evaporate any bullish hopes. In addition to that, a daily candlestick below $25,000 would open the gates for further lower levels, $18,000 last seen in October.

Technical indicator:

RSI: The daily relative strength index trades below the average line near to the oversold zone. It reads at 31 with a negative bias.

 

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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