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Bitcoin Market Analysis – 22.05.2021

Bitcoin’s failure to extend its recovery shows supply exceeds demand at higher levels and this could extend any possible comeback of the bulls. BTC/USD had recently regained $42k after a record-breaking recovery from a $30,000 dip on May 19, with the latest concerns erasing some of its progress. May 19’s price crash in the Bitcoin (BTC) spot market wiped about $7.56 billion worth of long-leveraged positions from cryptocurrency derivatives markets.

We believe that, the cleanse sets up Bitcoin for a new cycle high, it’s highly unlikely that the bull market has ended, even though, the next cycle phase is likely to be spent below $63k.

Altcoins like Ethereum were quick to follow suit as they joined Bitcoin in its plunge and hardly a token was left unscathed by the downturn as a wider-sell-off rippled across the market, resulting in a $437 billion cut to the total market capitalization to $1.672 trillion, its lowest level since April 25.

Looking at the BTC daily chart, a downward trend up to 60-day cycle low in place even though the bulls are fighting back to reclaim the key support level-$42k. From the cycle point of view, we have a cycle low that may be translated as preparing the market for the next big move even though it might not be soon.

The possibility here, is a comeback to retest $34k-$35k level before making any cycle high. Yes, we want a strong bull market but we need to be patient for the bull market to resolve itself.

Be careful out there, watch your leverage, respect your stops, stay cool and be in control. Don’t respond to fast markets and manipulated news.

Fig.1.a downward trend up to 60-day cycle low in place as the bulls, battle to reclaim the key support level-$42k.
Source: Paid Content by Peter Brendt and his partners at bitcoin.live

 

Looking at the BTC weekly chart , BTC is making a 52-53% decent decline on a big hammer candle to a cycle low on a long stretch. The bears are still sustaining the momentum to prolong any possible resurgence as it continues to flip the EMA 8 into resistance. I’m hoping to see weeks of consolidation that could serve as a base for any big move.

Prepare your mind for any possible outcome in an open position like this. One of the possible scenarios is a further drop to $28,850 support level. A strong rebound off this support will suggest accumulation at lower levels and may result in a longer consolidation. The second scenario is an instant price rise above $42,500 which will signal advantage to the bulls.

Stay strong, this is all about how you handle your positions and emotional state.
We will find the right trade opportunity to take advantage of, soonest. Let’s give the bulls the benefit of doubt and not lose our position in the open market.

Fig.2. BTC making a 52-53% decent decline on a big hammer candle to a cycle low. Source: bitcoin.live

🔴This Market Update is created using Paid Content by Peter Brendt and his partners at Bitcoin.live. Peter Brendt is a Trader since 1975. Author and publisher of the Factor Report as well as Best Selling Trading Books. If you want to read full content by him and his partners, trading signals/calls in real time, daily/weekly/monthly reports, trading videos and podcasts, trading tips check out his VIP Subscription Service


🔴This Market Update is created using Paid Content by Peter Brendt and his partners at Bitcoin.live. Peter Brendt is a Trader since 1975. Author and publisher of the Factor Report as well as Best Selling Trading Books. If you want to read full content by him and his partners, trading signals/calls in real time, daily/weekly/monthly reports, trading videos and podcasts, trading tips check out his VIP Subscription Service