Bitcoin Price Analysis on 19 May, 2021

Bitcoin price analysis highlights BTC's breakdown past its critical support line at $42,000.

The latest price breakdown paves the way for further bearish movements.

If Bitcoin plunges past the the $30,000 region, further downside is certain.

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At the time of writing, the number one cryptocurrency is in trouble after plunging below the $40,000 mark during today's early morning trading session. According to a near-term technical perspective, Bitcoin's current downward trend appears unstoppable. However, the critical $30,000 region on the daily chart could be Bitcoin's savior going through ongoing circumstances.

Earlier today, Bitcoin registered a new 3.5 month low, following China's latest decision to ban all transactions involving cryptocurrencies. The latest price dip is the most extensive price breakdown of the current bearish leg. The number one cryptocurrency recorded a low of about $38,500 in today's early morning trading session, marking a 35 percent price decline from the recent ATH of $64,880. Such a price decline was last seen on February 8.

Looking at the near-term technical indicators, the route currently with the least resistance for Bitcoin appears to be the downside. With the Relative Strength Index (RSI) setting camp at the oversold area, there are no signs of early recovery for Bitcoin. At present, investors should tighten their belts and prepare for a further downward stretch.

Such a move has not been seen since the March 2020 market crash. It is safe to say that the bearish trend is unstoppable at present unless the $30,000 region unfolds as a solid support line. At present, investors should hold back until the crypto coin settles above the $40,000 region to go all-in. A decisive close above $40,000 could initiate Bitcoin's recovery




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Jan Novotny
Analytical expert
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