Can Bitcoin kick start a rally anytime soon?

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Can Bitcoin kick start a rally anytime soon?

 Can Bitcoin kick start a rally anytime soon?
Image source: © gopixa | Megapixl.com

Highlights

  • On 19 May, Bitcoin was still struggling to climb above the US$30,000 mark and was trading at US $29,345.56 with a 24-hour trading volume of US $32,63,51,01,425.
  • Bitcoin continues to be in an oversold position with it holding a support level above US$28,391.47 and resistance level between US$35,000 and US$40,000.

It’s been quite frustrating for those keen on Bitcoin and co. Ever since bitcoin touched its all-time high of US$69,044.77 on 10 November 2021, it could not maintain its momentum. To make things worse, the recent flash crash last week pushed bitcoin under the US$30,000 mark.

As Bitcoin is getting to its settling point, let’s take look at the realistic chance of whether it could reach its past glory. If one were to look at the current charts, then it is safe to assume that it will take a herculean effort to see its past glory. Although it is not unimaginable as Bitcoin has been struggling in the crypto winter phase since November 2021.

To make things worse, the recent sell-off saw the Bitcoin sink to this year’s lowest of US$26,350.49 last week.

Image Credit: Trading View

If one were to look at the technicalities, then Bitcoin’s price continues to be in the bearish phase. Though it did show a brief consolidation in late April. Bitcoin continues to be in an oversold position with it holding a support level above US$28,391.47 and a resistance level between US$35,000 and US$40,000.

The RSI is still hovering around 33.88, indicating that there are more sellers than buyers in the market at present. However, the Moving Average Convergence Divergence line does indicate a ray of hope.

The MACD suggests the gap is fast closing and though the MACD line (in blue) is still well below the signal line (in orange). If the Bitcoin bulls can successfully cross the resistance level, then the market participants can expect an uptrend.

How are Bitcoin volatility levels faring?

But for an upswing to happen, it’s critical that the volatility level reduces significantly. 

Image credit: Trading View

If one were to look at the volatility in the chart above, then the Bollinger Bands does appear to be wider suggesting heightened volatility. But market participants can take heart from the fact that the candles are witnessing a greater number of greens than reds suggesting an upward trend.

Market experts believe that this bearish run has well and truly wiped off all the gains made during the bull run. Also, what Q1 2022 showed was now that the current trend is pretty similar to the April 2021 bear market. The experts feel that it’s time that BTC may see a revival soon enough.

Image Credit: Twitter @100TrillionUSD (PlanB)

Bitcoin’s price performance

On 19 May, Bitcoin was still struggling to climb above the US$30,000 mark and was trading at US$29,345.56 with a 24-hour trading volume of US $32,63,51,01,425. Bitcoin is down by 1.78% in the past 24 hours with a live market cap of US$5,67,41,91,50,928.

Conclusion

For Bitcoin to come back to its old heights it first has to break the resistance level and then kick start the rally. Only time will tell when bitcoin enthusiasts can relish some positive movement. Till then, enthusiasts can hope there is no further crash.

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