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Bitcoin Update for May 16th, 2021

Happy Sunday everyone, I hope you are all having a great weekend. As far as bitcoin goes it is trying but so far not really having the best weekend. Bitcoin is still trying to recover from this latest correction but so far hasn't really made much progress.

Looking at the 4-hour chart you can see that bitcoin has bounced several times from the lows but so far has been unable to sustain any type of uptrend. At the current level, it is also dealing with several pretty significant volume nodes. What I really want to see as a first step is for BTC to push above the high set on Friday. Even if BTC can accomplish that it will still have a significant amount of work to do to get back up to where it was before this correction started.

Bitcoin 4-hour Chart

Bitcoin MACD 4-hour Chart

Looking at the 4-hour MACD chart you can see that there are some bullish indications but when we move out to the longer time frames so far we are not seeing any signs of bullishness.

Bitcoin Daily Chart

Looking at the daily chart you can see that bitcoin is well below all of the moving averages and sitting near the bottom of the consolidation box. Also, both indicators (MACD & RSI) are still looking kind of bearish.

Bitcoin Weekly Chart

Looking at the weekly chart we can see that bitcoin did bounce off of the weekly 21 EMA but in my opinion if bitcoin drops back down again and this time the 21 EMA doesn't hold BTC will most likely drop down to around the $40k level. If that level also fails it is possible we could see BTC fall significantly lower possibly even down near the $30k level.

Bitcoin Weekly MACD Chart

Both indicators on the weekly time frame continue to look bearish with the RSI continuing the downtrend it has been in since almost the beginning of the year. Looking at the weekly MACD chart we can see that it first crossed bearishly about the middle of April and it has become even more bearish as time has passed.

I really wish I had a more bullish outlook on bitcoin right now but I am still not seeing much that points to a reversal. Hopefully, over the next few days, we will see a change and some signals from bitcoin that point at least to it bottoming.

Take care!


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