Post Crypto Crash, What Are Bitcoin's Resistance & Support Levels?

Follow us on Google News:
 Post Crypto Crash, What Are Bitcoin's Resistance & Support Levels?
Image source: Travis Wolfe,Shutterstock

After the cryptocurrency market crash on Wednesday, May 19, Bitcoin (BTC) has settled at its support level of US$ 38,000 for the last two trading days. However, crypto analysts have varied resistance level predictions for the volatile token.


Bitcoin, the largest as well as the trendsetting token of the crypto market, plunged to almost US$ 30,000 and then rebounded to US$ 40,000 apiece within a span of two hours on Wednesday.

While BTC token has been trading in the range of US$ 38,000 to US$ 42,500 apiece for the last 48 hours, the spot price is still well below expectations. The overall crypto market cap is at US$ 1.76 trillion, down as much as US$ 600 billion month-to-date (MTD). 

Meanwhile, analysts have keenly been marking potential resistance and support levels if a fresh rally or a new crash takes hold of the crypto market.

Buy the dip’ or ‘buy at discount’ calls for Bitcoin have been overflowing on social media platforms. But right now, investors are turning all their attention to two price levels: will Bitcoin hit the red floor or green ceiling?

BTC/USD's Six-Month Trajectory Against Moving Average Multiple. Support Levels (Green lines) & Resistance Levels (Red lines). Source: Refinitiv

What Will The Next Resistance & Support Levels Be For Bitcoin?

The first resistance level is US$ 45,000, around US$ 5,000 or 12.5 per cent above Bitcoin’s current spot price of US$ 40,000 apiece.

After analyzing the moving average multiple, Bitcoin prices are still down by 20 to 30 per cent. Its second resistance level could be at US$ 51,000, overlapping its 21-day moving average.

The third and fourth thresholds have been placed at US$ 57,500 and US$ 60,000, respectively. If the crypto token price breaches the fourth ceiling, it could achieve a record high peak. It was marching at nearly US$ 38,000 apiece on Friday, May 21 (11:25AM EST).

Let see the four support levels for the bear crypto market.

Bitcoin may consolidate and hit at the bottom, down to the last five-month range. The uptrend continues intact above US$ 35,000 for a while, although the market is very sensitive and volatile, and any small development could cause sharp swings and pullbacks. If the giant electronic token tumbles below the US$ 30,000-mark, it could witness a steep dip to a US$ 20,000-mark.

A Glance At Ethereum’s Potential Technical

Ethereum, the second-largest virtual token, is trading in the range of US$ 2,400 to US$ 3,000 apiece. The blockchain network platform has been counting big on its 2.0 version, which could help it in its competition with Bitcoin.

If the crypto market crashes again, Ethereum could take support at US$ 1,500 apiece. If it crosses its spot price of US$ 3,500, then it might surge to an all-time high price.

The coin was trading at US$ 25,000 on Friday, May 21 (11:30AM EST).

The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.

Featured Articles

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK