It has been very frustrating for those who are keen on Bitcoin and their partners. Since Bitcoin touched an all-time high of $69,044.77 on November 10, 2021, it has been unable to sustain its momentum. To make matters worse, the recent crash last week pushed Bitcoin below the $30K mark.
As Bitcoin reaches its stabilization point, let’s take a look at the realistic opportunity to see if it can reach its past glory. If one looks at the current charts, it is safe to assume that it would take a hard effort to see its past glory. Although, it is not far from imaginable because Bitcoin has been struggling in the crypto winter phase since November 2021.
To make matters worse, the recent sell-off sent bitcoin to its lowest level this year at $26,350.49 last week.
Image credit: Trading View
If one looks at the technical aspects, the bitcoin price will remain in the bearish phase. Although it showed a brief consolidation in late April. Bitcoin is still in oversold mode as it holds a support level above $29,100 and a resistance level between $35,000 and $40,000.
The RSI is still hovering around 33.88, which indicates that there are more sellers than buyers in the market at the moment. However, the Moving Average Convergence Divergence line is indicating a glimmer of hope.
The MACD indicates that the gap is closing quickly and although the MACD line (in blue) is still well below the signal line (in orange). If the Bitcoin bulls are able to successfully pass the resistance level, then market participants can expect an upward trend.
How is bitcoin’s volatility levels going?
But for a recovery to take place, it is crucial that the level of volatility decrease significantly.
Image credit: Trading View
If one looks at the volatility in the above chart, the Bollinger Bands appear to be wider which indicates increased volatility. However, market participants can take heart from the fact that candles are seeing more green than red indicating an upward trend.
Market experts believe that this downtrend has well and truly wiped out all the gains made during the uptrend. Also, what the first quarter of 2022 has shown is that the current trend is very similar to the bear market of April 2021. Experts feel that the time has come for BTC to see a rebound soon enough.
Image Credit: Twitter @ 100TrillionUSD (PlanB)
Bitcoin price performance
On May 19, Bitcoin was still struggling to climb above the $30,000 mark and was trading at $29,345.56 with a 24-hour trading volume of $32,63,51,01,425. Bitcoin is down 1.78% in the past 24 hours with a live market capitalization of $5,67,41,91,50,928.
In order for Bitcoin to return to its old highs, it must first break the resistance level and then start the rally. Only time will tell when Bitcoin fans can enjoy some positive action. Until then, enthusiasts can hope there will be no further breakdown.
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