Bitcoin (BTC) Price Analysis: A New Uptrend? 23 May 2022

According to technical analysis by NewsBTC’s Aayush Jindal, if there is a clear move above the $30,600 resistance zone, BTC could rally.

Bitcoin May Rise Soon

Bitcoin continued to trade well above the $28,500 support zone and appears to have formed a double bottom formation above $28,500 before starting a fresh increase.

There was a clear move above the $29,500 resistance area and the 100 hourly simple moving average, and BTC even climbed above the $30,000 resistance area. However, the bears are still active near the $30,600 resistance area. Bitcoin pulled back a bit and it broke below the 23.6% Fib retracement level of the upward move from the $29,225 high to $30,500 high.

There is also a key bullish trend line forming with support near $29,800 on the hourly chart of the BTC/USD pair. It is now trading above the $30,000 level and the 100 hourly simple moving average. Instant resistance is near the $30,450 level. The next major resistance is near the $30,600 level.

A clear move above the $30,450 and $30,600 resistance levels could start a strong rally in the near term. The next key resistance could be near the $31,500 level. Above this, the price could rally to $32,500.

Will Bitcoin Drop?

Jindal says that if Bitcoin fails to break through the $30,600 resistance zone, it could start a fresh decline. According to him, immediate support is near the $30,000 level. The first major support is near the $29,850 level and the trend line. The trend line is near the 50% Fib retracement level of the upward move from the $29,225 high to $30,500 high. A clear move below the trendline could lead the price towards the $28,500 support.

What Are Technical Indicators Saying?

• Hourly MACD – The MACD is now slowly losing momentum in the bullish zone.
• Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
• Major Support Levels – 29,850 followed by $29,600
• Major Resistance Levels – $30,600, 31,200 and $31,500