Call it a major Price correction or a fundamental crisis, Bitcoin has been falling since the last weekend and the bear has taken over the market. Bitcoin was nicely ascending until Chief Executive Officer Elon Musk retreated his position on Bitcoin. The prices ascended from $59000 high to a low of $41900 as of May 17, 2021.
Today Elon Musk confirmed that Tesla is still holding Bitcoins which spiked the prices back to near $45k but couldn’t hold the position much longer. The cryptocurrency market is more prone to news than any other market. But still, chart analysis can help us guess the position where the prices are headed.
- Bitcoin is holding the support of $42940 to $42128 region.
- There are two resistances if there is any pullback
- First Resistance is at $51534
- The second Resistance is $51215
We need to see if we can get support at $40586.96-$45135.66 and climb along the uptrend line. Careful trading is necessary as it is not possible to rule out a move that is supported at $45135.66 and climbs to the $48199.13-$50736.52 section. Of the many expected movements, I think the most dominant is the movement that touches the uptrend line and moves upward.
Accordingly, in order to make a rapid rise, an upward trend is expected after touching the upward trend line passing through the $38150.02 point. We also have strong psychological support of $40k but it is very likely to break in the next few hours due to bearish short trends.